Key Takeaways from the 22nd Annual Raymond James Security Investor Conference

Datasite was proud to sponsor the 22nd Annual Raymond James Security Investor Conference, held December 17–18, 2025, at the InterContinental New York Barclay. The conference brought together more than 65 public and private security companies and over 500 investors, executives, and industry leaders, providing an unparalleled opportunity to understand trends shaping the security sector. We are excited to capture key insights from the sessions and share them with our community.

M&A and Capital Markets Update

Leaders at Raymond James opened the conference with a deep dive into M&A and capital markets activity. They highlighted that the security industry continues to see strong transaction volume, with 2025 ranking as the second-best year on record for middle-market deal activity.

Key trends identified include a surge in private equity interest across subsectors, particularly fire/life safety, public safety software, and identity and access solutions. Strategic buyers are increasingly active, pursuing acquisitions to refine portfolios, enter new markets, and capitalize on converging technologies. Cloud-based and SaaS models are emerging as dominant drivers of growth, enabling faster deployment and operational efficiency.

The evolution of the industry was also highlighted, from hardware-focused businesses to software- and cloud-driven models, particularly in public safety applications where speed, efficiency, and life-saving outcomes are increasingly achievable. Recent high-profile deals, including transactions involving Axon, Motorola, Allegion, and TR, illustrate the sector’s strategic and investment momentum.

Debt Capital Markets Update

We heard from leaders at Capital One who provided a thorough overview of debt market activity in the security sector. He noted that the market remains healthy, with refinancing, repricing, and leveraged buyouts supporting continued growth. Companies such as ADT and Allied Universal have taken advantage of these favorable conditions to reduce interest expenses, extend maturities, and strengthen capital structures.

Market leverage has remained stable, averaging around five times EBITDA, with interest coverage ratios showing modest improvement. The private credit market has also grown substantially, providing an alternative to traditional bank lending and increasing flexibility for sponsors and borrowers alike.

Competition among lenders has compressed spreads and enhanced documentation flexibility, giving companies more options when structuring deals. Interest rate hedges are being actively employed to manage volatility, allowing management teams to maintain focus on operational priorities. According to management, these trends are setting the stage for continued M&A and capital deployment in 2026, even amid macroeconomic uncertainties.

Looking Ahead

The Raymond James Security Investor Conference highlighted that the security industry is at an inflection point, marked by technological transformation, strong deal activity, and evolving capital markets. Investors and operators alike are focused on companies that combine operational discipline with strategic adoption of cloud, SaaS, and AI-driven solutions.

As 2026 approaches, the market outlook remains encouraging: M&A activity is expected to continue, private credit and refinancing options provide flexibility for growth, and strategic buyers are increasingly active across subsectors. For companies navigating this environment, success will hinge on the ability to integrate technology, optimize capital structures, and execute with precision.

Whether you are a private equity investor, corporate buyer, or operator, the lessons from this year’s conference reinforce that thoughtful strategy and disciplined execution will drive value in the year ahead.