PE Security Acquisitions UK & US: 2026
PE firms drove nearly half of all security M&A in 2025 with 242 deals. This post covers the biggest transactions and what PE buyers look for in a security business.
DealFlowAgent is the UK and US's only M&A advisory and brokerage firm specialising in electronic security businesses. We help owners secure multiple acquisition offers at higher valuations.
Sell your security systems businessThe security sector is one of the most active M&A markets right now - and private equity is driving the pace. In 2025, security solutions M&A across the UK and US reached 242 deals, a 24.1% year-on-year increase, with PE buyers accounting for nearly half of all activity. Whether you own a manned guarding company, an electronic security installer, or a fire and life safety business, understanding who is buying and what they are paying has never been more relevant.
If you operate in fire protection specifically, the data is even more striking - the Fire and Life Safety segment recorded 125 transactions in 2025, a 66.7% jump on the prior year. Our fire safety M&A niche page covers that sub-sector in detail, including buyer appetite and valuation benchmarks for UK businesses.
This post draws on data from the Capstone Partners Security M&A Update (February 2026) alongside deal filings, press releases, and our own advisory experience in the UK mid-market.
The Numbers Behind the Surge
The headline figure from Capstone Partners' February 2026 report is 242 deals completed in 2025 - a 24.1% increase on 2024. But the breakdown by buyer type tells a more specific story.
PE add-on transactions made up 45.9% of all security sector deals in 2025, up 14.4% year-on-year. Repeat acquirers dominated this category, with Gemspring Capital-backed Security Franchisors and Altas Partners-backed Pye-Barker Fire and Safety alone completing dozens of transactions.
PE platform transactions - where a PE firm establishes a new buy-and-build vehicle - rose 33.3% year-on-year to 20 deals. Each new platform represents a buyer who will spend the next three to seven years acquiring add-on businesses in a specific vertical or geography.
Private strategic M&A grew 36.1% year-on-year and accounted for 34.3% of deal volume. Trade buyers remain active but are increasingly competing against well-capitalised PE platforms for the same targets.
Fire and Life Safety was the standout segment, growing 66.7% year-on-year to 125 transactions, driven by data centre construction, post-Grenfell regulation in the UK, and NFPA code compliance in the US. Our separate report, Fire Safety M&A 2026: PE and Strategic Buyers, covers this segment in more depth.
Uniformed Guard recorded a 150% year-on-year jump - albeit from a low base of nine deals - as police staffing shortfalls across US cities push municipalities toward private guarding contracts with recurring revenue characteristics.
On valuation, the five-year average EV/EBITDA multiple for the sector sits at 11.8x, with an EV/Revenue multiple of 2.2x. Smaller owner-managed businesses typically trade at lower multiples; established platforms with strong recurring revenue command a premium.
The Biggest PE Deals of 2025-2026
Warburg Pincus / Raptor Technologies - $1.8 Billion
In November 2025, Warburg Pincus acquired Raptor Technologies from Thoma Bravo in a sponsor-to-sponsor transaction valued at $1.8 billion. Raptor is a school safety software business serving 60,000 schools across 55 countries - visitor management, threat detection, and emergency response coordination.
Thoma Bravo had owned Raptor since 2018, building it through add-on acquisitions before exiting at a valuation reflecting both recurring revenue quality and macro tailwinds around school safety. The US Homeland Security Grant Programme redirected $1 billion to school security in 2025. The deal also illustrates how PE firms cycle assets between themselves: sponsor-to-sponsor transactions now represent a meaningful share of large-cap security deals, as platforms that have completed their growth phase sell to larger funds seeking established businesses.
Pye-Barker Fire and Safety - 57 Acquisitions in 2025
Pye-Barker Fire and Safety, backed by Gemspring Capital (and latterly described in some sources as Altas Partners-backed), is the single most active acquirer in the US fire and life safety market. According to the company's own announcement, it completed 57 acquisitions of fire alarm, sprinkler, suppression, and security companies in 2025 alone - ending the year with 9,000 employees across 47 states.
Pye-Barker entered Hawaii and Arkansas in 2025, pushing closer to national coverage, ranked fourth on the SDM 100 list of top US security dealers, and made the Inc. 5000 for the sixth consecutive year. It describes itself as the largest fully integrated fire protection, life safety, and security services provider in the US.
The business model is straightforward: acquire owner-managed local businesses, retain the local brand and management team, integrate back-office functions, and cross-sell a broader service offering. The recurring monitoring and service contract base provides the stable cash flow that underpins high acquisition multiples. This model is the template that many UK PE firms are now attempting to replicate domestically. The International Fire and Safety Journal's coverage of Pye-Barker's 2025 growth covers the company's regional expansion strategy in detail.
Allied Universal - Seven Acquisitions, ~$695 Million Revenue Added
Allied Universal completed seven acquisitions in 2025, adding approximately $695 million in aggregate annual revenue. The most notable was Mulligan Security, acquired in August 2025 from Protos Security, providing uniformed security, fire, and life safety services to commercial properties across the Northeast US. Police staffing shortfalls - US departments operating at 91% of authorised levels according to the IACP 2024 survey - and rising crime concerns are driving institutional demand for private security, making recurring guard contracts an attractive acquisition target. Allied Universal's UK presence is primarily through G4S, which it acquired in 2021 and which generates approximately GBP 710 million in UK turnover.
Flock Safety - $7.5 Billion Valuation
Flock Safety is not a traditional security company. It provides automated licence plate recognition cameras to law enforcement agencies and communities on a subscription basis, and its Q1 2025 recurring revenue grew 70% year-on-year. Its post-money valuation of $7.5 billion reflects backing from a16z, Axon, and Y Combinator, among others.
The Flock Safety story matters because it illustrates where the sector's highest valuations are being generated: at the intersection of recurring revenue, technology, and public safety data. Its hardware-on-subscription model mirrors the recurring monitoring revenue model that makes traditional alarm businesses attractive to PE buyers, but at a scale and margin profile that commands a technology-sector multiple.
Menzies Aviation / G2 Secure Staff - $315 Million
In April 2025, Menzies Aviation acquired G2 Secure Staff for $315 million, taking its revenue above $3.1 billion and expanding its airport presence from 234 to 340 airports. G2 provides aircraft sweeps, cargo checks, and general aviation security staffing - illustrating appetite for security businesses embedded in regulated, essential-service environments.
EBITDA Multiples: What PE Firms Are Paying
Understanding valuation ranges is important for any business owner thinking about a sale or PE investment. The table below reflects deal data and market intelligence current to early 2026.
| Business Type | Buyer Type | EV/EBITDA Range | Notes |
|---|---|---|---|
| Small alarm/monitoring company (<GBP 1M EBITDA) | Trade buyer | 3.0x - 5.0x | Lower multiples for thin recurring revenue base |
| Small alarm/monitoring company (<GBP 1M EBITDA) | PE add-on | 4.0x - 6.0x | Premium for recurring revenue, geographic fit |
| Mid-market security platform (GBP 1M-5M EBITDA) | PE platform | 6.0x - 9.0x | Strong growth, management team, tech stack required |
| Fire and life safety (all sizes) | PE add-on / strategic | 7.0x - 12.0x | Regulatory tailwinds, data centre demand driving premium |
| Technology-enabled security (SaaS/monitoring) | PE / VC | 10.0x - 15.0x+ | Recurring revenue, high growth rate |
| Large platform (>GBP 10M EBITDA, established) | Sponsor-to-sponsor | 10.0x - 14.0x | Five-year sector average: 11.8x EV/EBITDA (Capstone) |
| Uniformed guard (no tech component) | Trade buyer | 3.0x - 5.5x | Labour-intensive, lower margins, fewer PE platform bids |
For context, the APi Group acquisition of Elevated Facility Services - a lift maintenance and facilities business - completed in 2024 at 12.9x EBITDA on $44 million of earnings, illustrating that adjacent essential-service sectors are attracting comparable multiples. Security businesses with similar characteristics - mission-critical positioning, recurring revenue, regulatory barriers to entry - are achieving the upper end of the ranges above.
Why PE Firms Love Security Businesses
Several structural features make security businesses highly attractive to financial buyers.
Recurring Monthly Revenue (RMR). Monitoring contracts, service agreements, and maintenance retainers create predictable, high-margin cash flow. PE buyers model their returns on the visibility of future earnings - a business generating 60-70% of its revenue from recurring contracts is easier to finance, forecast, and exit than one dependent on project work. The SDM Top 100 list measures US security dealers primarily by RMR, with the largest businesses generating tens of millions of dollars monthly.
Market fragmentation. The security sector on both sides of the Atlantic is populated by thousands of owner-managed businesses in local or regional markets. There is no dominant national player in most sub-sectors, which means PE platforms can acquire at sensible multiples and create value through aggregation. Pye-Barker's 57 acquisitions in a single year illustrate both the availability of targets and the speed at which a well-capitalised platform can build scale.
Technology integration opportunity. AI-enabled cameras, biometric access control, cloud-based monitoring platforms, and integrated command software are transforming what security businesses can offer. PE-backed platforms invest in technology post-acquisition to improve margins and differentiate their service. Businesses that have already adopted modern technology command higher acquisition multiples.
Essential services and recession resistance. Security is not discretionary. Commercial property owners, schools, hospitals, data centres, and government facilities maintain security contracts regardless of economic conditions. This defensive characteristic appeals to PE firms who need to demonstrate downside protection to their limited partners.
Regulatory tailwinds. The Building Safety Act 2022 in the UK and NFPA codes in the US create recurring compliance-driven demand. Businesses holding NSI Gold or SSAIB certification in the UK, or NICET qualifications in the US, benefit from regulatory barriers to entry that competitors cannot easily replicate.
UK PE Activity: The Mid-Market Picture
The UK security sector has its own PE dynamics, though the underlying logic mirrors the US.
Mitie remains the dominant listed player with GBP 1.179 billion in UK security turnover, pursuing an acquisition strategy spanning guarding, technology, and facilities management.
Allied Universal / G4S generates approximately GBP 710 million in UK turnover. Allied's 2021 acquisition of G4S was one of the largest global security transactions of recent years, and the combined business has continued consolidating since. OCS Group, Securitas, and Bidvest Noonan round out the top five UK security businesses by turnover, each in the GBP 300-400 million range, each with active M&A programmes targeting regional operators.
At the UK mid-market level, PE activity is growing. LDC, the Lloyds Banking Group PE arm, has been active in adjacent essential service verticals - its investment in The Pace Group lift maintenance business, which has completed 19 acquisitions since mid-2024, is instructive for security sector owners. Other mid-market UK PE funds including Inflexion, Livingbridge, and Palatine are actively searching for security platforms.
If you are considering a sale, our buy-side advisory service works with PE buyers on their search criteria and can help position your business for that process. Our post on BADR tax changes from April 2026 is also relevant for UK owners assessing exit timing.
The SIA licensing regime - GBP 204 per licence, three-year validity - and the NSI / SSAIB certification framework create accreditation barriers that add value in the eyes of buyers. PE firms paying to access a licensed, certified workforce will factor that into their acquisition premium.
The Capstone M&A Outlook for 2026 anticipates continued PE platform formation and add-on activity driven by buyer competition, technology targets, and sustained demand from school safety and data centre infrastructure.
What PE Buyers Look For
The following criteria are what buyers assess in initial diligence on a security sector business.
EBITDA threshold. Most UK mid-market PE funds require a minimum EBITDA of GBP 500,000 to GBP 1 million for a platform investment. For add-ons to an existing platform the threshold can be lower, but businesses below GBP 500,000 EBITDA are more likely to transact with trade buyers or smaller regional platforms.
Recurring revenue percentage. The proportion of recurring revenue - monitoring contracts, service agreements, maintenance retainers - is the single most important value driver. Buyers model RMR separately from project revenue and apply a higher multiple to the recurring component. Businesses where 50% or more of revenue is recurring will receive meaningfully different buyer interest than those dependent on project work.
Management team depth. If the owner is the only senior manager and the business cannot function without them, buyers will apply a significant discount or walk away. Having a team that can operate independently of the founder - operations, sales, finance - is a prerequisite for most PE investments.
Technology adoption. Businesses running modern security management software and cloud-based monitoring platforms are more attractive than those on legacy systems. PE buyers prefer to acquire a business already on a modern platform rather than one requiring a full system migration.
Certifications and accreditations. NSI Gold or SSAIB approval is expected for credible UK alarm and monitoring businesses. SIA-licensed staff, BAFE registration for fire businesses, and LPS 1014 approval for intruder alarm installation all add value. These certifications give PE buyers confidence in regulatory compliance and create barriers that competitors cannot quickly replicate.
Growth rate. A business that has grown revenue and EBITDA consistently over three to five years - even at a modest 5-10% per year - is more attractive than a flat or declining business of the same size. A demonstrable pipeline of contracted work or a repeatable process for winning new recurring customers is particularly valuable.
What This Means for Business Owners
The data points to a seller's market in security M&A - for businesses with the right characteristics. PE platforms are well-capitalised, mandates are broad, and buyer competition is driving multiples upward from historical averages.
For owners of security businesses in the GBP 1 million to GBP 30 million enterprise value range, this environment presents a genuine opportunity - but only if the business is positioned correctly. Strong recurring revenue, certified staff, a management team independent of the founder, and clean financial records will attract multiple competing buyers. Without these features, a business will either fail to attract PE interest or transact at a significant discount.
PE buyers typically acquire and hold for three to seven years before their own exit - often to a larger fund or a strategic acquirer. An advised seller running a competitive process receives better pricing and more favourable terms than an unadvised seller responding to a single inbound approach.
The current window - with 45.9% of deals PE-driven and multiples averaging 11.8x EV/EBITDA at the large end - is the strongest seller's market the security sector has seen in at least five years. Interest rate conditions and PE dry powder levels will not stay constant.
Frequently Asked Questions
1. What EBITDA multiple can a UK security business expect from a PE buyer?
Mid-market UK security businesses typically achieve 6x to 10x EBITDA from PE buyers, depending on recurring revenue percentage, growth rate, and business quality. Fire and life safety businesses with strong recurring revenue can achieve the upper end. The sector five-year average is 11.8x EV/EBITDA for larger transactions, per Capstone Partners.
2. What is the minimum size for PE interest in a UK security company?
Most UK mid-market PE funds look for minimum EBITDA of GBP 500,000 to GBP 1 million for a platform investment. PE-backed add-on platforms may accept smaller businesses - sometimes GBP 200,000 to GBP 300,000 EBITDA - if the geographic fit or customer base is compelling.
3. How long does a typical security sector M&A process take?
A managed UK mid-market sale process typically runs four to six months from initial preparation to completion, covering information memorandum preparation, buyer outreach, bid rounds, management presentations, due diligence, and legal completion.
4. Do I need to have NSI or SSAIB certification to sell my security business?
Most credible trade buyers and PE acquirers will expect NSI Gold or SSAIB certification for alarm and monitoring businesses. Without it, you may still attract buyers, but you are likely to face a valuation discount and a smaller pool of interested parties. If you are considering a sale in the next two to three years, achieving certification first is advisable.
5. What drove the 66.7% increase in Fire and Life Safety M&A in 2025?
Three main factors: data centre construction driven by AI infrastructure investment, post-Grenfell regulatory requirements under the Building Safety Act 2022 in the UK, and NFPA code compliance in the US. These structural demand drivers are expected to sustain M&A activity in the segment through 2026.
6. Is Pye-Barker acquiring UK businesses?
Pye-Barker Fire and Safety operates exclusively in the United States, where it now covers 47 states with 9,000 employees following 57 acquisitions in 2025. It is not active in the UK market. However, it represents the template that UK PE firms are attempting to replicate domestically in the fire and life safety sector.
7. What is recurring monthly revenue (RMR) and why does it matter for valuation?
RMR is the predictable, contracted monthly income from monitoring, service agreements, and maintenance contracts. Buyers apply higher multiples to RMR because it provides visibility into future earnings. A business generating GBP 50,000 per month in RMR is substantially more valuable, on a multiple basis, than one generating the same total revenue from one-off projects.
8. How does the US security M&A market compare to the UK?
The US market is larger and more active - 242 deals in 2025 versus a much smaller number in the UK. The UK market is becoming more active at the mid-market level as PE firms seek to replicate the US consolidation playbook. Valuation multiples are broadly comparable for similarly-sized and similarly-structured businesses.
9. What is a sponsor-to-sponsor deal and why does it matter?
A sponsor-to-sponsor deal is when one PE firm sells a business to another. The Warburg Pincus acquisition of Raptor Technologies from Thoma Bravo is a recent example. For business owners, the implication is that selling to a PE platform is not necessarily a single-step exit - the platform may itself be sold to a larger fund during your earn-out or equity rollover period.
10. What should I do now if I am considering selling my security business in the next two to three years?
Get three years of clean management accounts in order, develop your management team so the business is not dependent on you, maximise recurring revenue by converting project customers to service contracts, and engage an M&A adviser early to understand your likely valuation and what steps would improve it before going to market.
Speak to an Adviser
If you are a security business owner in the UK considering your options - full sale, partial sale to a PE partner, or simply understanding what your business is worth - the best time to start that conversation is before you are under pressure to make a decision.
DealFlowAgent works with UK business owners at the GBP 1 million to GBP 30 million enterprise value level, with direct relationships across PE buyers, trade acquirers, and growth capital providers active in the security sector.
Contact our team for a confidential, no-obligation conversation about your options.
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