INTRODUCTION Contributed by: George Casey
tile actors access to sensitive data or control of the data centre to cause disruption or otherwise compro- mise national security interests. Specifically, the USA has strengthened its FDI regulations and introduced mandatory filings, with a specific focus on the tech- nology industry. France, Germany and the UK have adopted stricter requirements for acquisitions of tech companies in their jurisdictions, and the EU has adopted co-ordination regulations across the region through its AI Act for sharing information and collabo- rating in FDI enforcement. The US antitrust regulatory landscape has evolved significantly. After more than two years of drafting, and following a public consultation period, final changes to the HSR filing form applicable to reportable trans- actions became effective in February 2025. These changes significantly increase the burden of disclo- sure requirements on filing parties, including more expansive document productions, narratives on mar- ket dynamics, and information on the board member- ship of the acquiring person’s officers and directors. Merger control in 2025 is a central factor in US tech M&A, with regulators balancing competition concerns against innovation and investment. Deal makers must be proactive in addressing antitrust risks, structuring deals to withstand scrutiny and planning for potential regulatory delays. The environment is more predict- able for smaller deals, though large-scale tech con- solidation remains under the microscope. Given the increasing cyber-threat landscape, govern- ments are also focusing on cybersecurity for critical infrastructure. In the EU, there has been a notable increase in cyber-specific regulation, and while the current US administration has signalled a pro-growth deregulatory stance, cybersecurity regulation has still tightened at the state level and within key federal frameworks. In 2026, we expect to see further devel- opments in cyber-specific regulation in the USA and
• an IPO; • a direct listing; or • a de-SPAC transaction (ie, a merger with a special purpose acquisition company – although de- SPACs have significantly declined as an option for a number of reasons). However, M&A has remained the dominant exit route for tech companies in 2025 given that it generally offers faster liquidity and fewer regulatory hurdles than public market exits. Structured secondary sales have been increasing- ly used to provide liquidity for early investors and employees, and hybrid exit models – including minor- ity stake investments and licensing-based acquihires – are gaining traction as flexible alternatives to full acquisitions. Private equity as an exit route has also become a dominant alternative to IPOs, particularly for later- stage companies seeking liquidity without the volatil- ity of public markets. Private equity firms are targeting tech companies with recurring revenue models, such as Software as a Service (SaaS) and infrastructure platforms, and are active in carve-outs, take-privates and consolidation plays across the sector. Merger- market reports that, as of Q3 2025, buyouts in North America totalled USD375 billion (up 51% year-over- year), led by the USD56.6 billion Electronic Arts deal by an investor consortium comprised of the Public Investment Fund (PIF), Silver Lake and Affinity Part- ners, followed by Air Lease’s USD27.4 billion buyout by Sumitomo, Apollo and Brookfield in September. Looking ahead, AI-driven consolidation and creative deal structures will continue to shape the tech exit landscape, with M&A and secondary markets likely to remain the preferred paths to liquidity. IPOs Rebounding Overall, the IPO market in 2025 has rebounded sharp- ly, with activity up nearly 80% compared to the same period in 2024, and with 250 tech IPOs on the US stock market as of September 2025. Technology companies have played a central role – especially those in AI, fintech and cloud services.
the EU in particular. Trends in Tech Exits
Technology companies that decide to continue their journey as independent players on their path to prof- itability can choose from a variety of forms of public market exits:
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