The European cybersecurity market is becoming less forgiving. What once supported a wide range of standalone providers is increasingly concentrating around businesses with sufficient scale to act as platforms rather than single-solution vendors.

This shift matters most in the €50 million to €500 million revenue segment. Companies at this level typically have proven products, recurring revenues, and established enterprise customers. However, only a subset have the operational depth, geographic reach, and organisational capacity to support regulated customers across multiple European markets. That distinction is now driving outcomes.

Regulation is a key driver. The expansion of the EU NIS2 Directive, which mandates stricter security requirements on more sectors , significantly increases the number of organisations subject to formal cybersecurity obligations and board-level accountability. Research published by European Union Agency for Cybersecurity (ENISA) indicates that regulated entities increasingly favour suppliers that can demonstrate resilience, continuity, and the ability to operate across jurisdictions. This places pressure on vendors that are highly specialised but structurally narrow.

Transaction activity reflects this trend. Buyers are now less likely to acquire cybersecurity businesses offering a single product. Private equity buy-and-build strategies and corporate acquisitions are prioritising companies that can absorb additional products, integrate teams, and serve as long-term platforms.

For management teams, the implication is straightforward. Mid-cap cybersecurity companies must decide whether they are building a business with the breadth and infrastructure to scale further, or whether the most realistic path to value is through integration into a larger group. The middle ground is shrinking.

In this market, scale is no longer just an advantage, it is becoming a requirement.

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