USA – CALIFORNIA Trends and Developments Contributed by: Derek Liu, Aarthi Belani and Lawrence Lee, Baker McKenzie
mance computing. However, the deal was terminated in October after Core Scientific shareholders rejected the all-stock offer. Softbank/Ampere Computing SoftBank Group reached an agreement to acquire Ampere Computing, a chip developer that makes processors for servers, for USD6.5 billion. This trans- action is aimed at playing a critical role in advancing SoftBank’s ambitions to drive AI innovations. Soft- Bank’s CEO noted that Ampere’s strength in semi- conductors and high-performance computing would help with SoftBank’s commitment to AI innovation. These transactions highlight an increasingly prevalent shift in priorities: beyond scaling AI operations, indus- try players are increasingly focusing on the underlying AI infrastructure, making it a key driver of strategic transactions. Cybersecurity and digital infrastructure As noted above, cybersecurity transactions account- ed for two of the largest deals in the tech sector in 2025, and cybersecurity M&A has emerged as a defining theme within the broader tech M&A surge. Escalating data privacy concerns have driven some of the year’s largest transactions. As cyberthreats increase and regulatory scrutiny around cybersecu- rity practices intensifies, companies are prioritising their readiness to respond, which has prompted deal makers accordingly. Cybersecurity capabilities are also becoming drivers of enterprise value in today’s market. The rise of AI and the accompanying rise in sophisticated cyberthreats underscores the strategic importance of cybersecurity. Proofpoint’s USD1 billion acquisition of Hornetsecurity Group Echoing the pattern of cybersecurity megadeals, Proofpoint announced its intention to acquire Hor- netsecurity Group, a leading provider that specialises in Microsoft 365 security, in a deal valued at around USD1 billion. This acquisition strengthens the parties shared goal of protecting organisations of all sizes and their people, and of safeguarding their data by provid- ing human-centric security to businesses worldwide through managed service providers by consolidating “fragmented security tools into a unified platform”.
Sophos’s acquisition of Secureworks Sophos acquired Secureworks for an all-cash trans- action valuing Secureworks at approximately USD859 million. This transaction would make Sophos the lead- ing provider of Managed Detection and Response (MDR) services. With this acquisition, Sophos can offer a security operations platform comprising a wide range of “built-in integrations for adaptive protection, detection and response for mitigating cyber-attacks”. Energy and renewables Major M&A transactions continue to shape the energy and renewables landscape in the Americas, driven by financial imperatives, regulatory and market exposure, and evolving ESG objectives. An example of how strategic energy transactions are continuing at a fast pace is Iberdrola’s 2025 sale of its Mexican generating assets to the Spanish energy company Cox, a trans- action that included 15 operating power plants total- ling 2.6 gigawatts of capacity at a valuation of more than USD4.2 billion. The deal’s structure allows for additional payments as new assets come online, and reflects the value of a flexible and pragmatic approach to deal structuring in today’s market. Energy-related M&A activity is occurring against a backdrop of growing energy demand in the United States, where the development of data centres is driving unprecedented electricity consumption and putting upward pressure on energy prices. As data centres compete for reliable power, acquirers are rec- ognising potential growth in the value of reliable oper- ating assets. Recent examples of this are J-POWER USA’s sales in 2025 of several operating power plants in Texas, Oklahoma and Illinois to acquirers ranging from publicly owned utilities to private equity firms (Baker McKenzie represented J-POWER USA and its affiliates in these transactions). These project sales cumulatively comprise more than 2,000 megawatts of dispatchable gas-fired generating capacity, and were valued in part based on their ability to be reliable gen- erating assets in constrained power markets. Additionally, joint venture transactions are similar to traditional M&A and allow owner-developers to create liquidity from assets that are either operational or in late-stage development, while retaining a controlling or managing interest in the projects and often receiv-
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