Amid a relatively soft deal-making environment, one bright spot this year has been the surge in cybersecurity deals.

So what's fueling activity in the space and how are factors such as AI and rising geopolitical tensions affecting the industry?

I'm Alison Nathan and this is Goldman Sachs exchanges.

To discuss the forces shaping cybersecurity,

I'm sitting down with Marco Pelletti,

global head of security software

within the technology, media, and telecommunications group

in our investment banking business.

Marco, welcome back to exchanges.

It's good to be here.

So, Marco, the cybersecurity sector is one of the few

that's actually seen a pickup in M&A activity this year.

We've seen a number of deals, including Google's largest ever acquisition to purchase cybersecurity startup WIS for $32 billion.

What are some of the drivers behind deal activity in the space?

You know, it's a good question.

I would say the reality is security is just really important.

And because it's really important, it's really important to a lot of potential buyers.

And so when I look at what's been going on in the last few years, the,

call it the universe of buyers that we have in cybersecurity has really expanded.

Last year, for example, we also advised MasterCard on the acquisition of Recorded Future,

which was a threat intelligence company.

And so when I think that's going on, it's really, I would say, two or three main factors.

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