INTRODUCTION Contributed by: George Casey
Overview Welcome to the fifth edition of Chambers’ Technology M&A Guide. Continuing with the momentum that has been built over the last four editions, we are pleased to broaden the scope of this year’s guide and, along with wel- coming back our previous contributors, we extend a heartfelt welcome to our new participants from various countries. In the final stretch of 2025, the US M&A landscape continues to be impacted by macroeconomic policies and geopolitical headwinds. Evolving tariff policies, international trade tensions, uncertainty in inflation and unemployment forecasts, and the ongoing ten- sions in the Middle East and the war in Ukraine have affected the wider market and dampened investor confidence. Despite these uncertainties, technology M&A remains an important priority for many investors and companies heading into 2026. Artificial intelligence (AI) remains a key driver in tech sector deal making as companies continue to pursue strategic imperatives around AI, including high-perfor- mance computing, advanced networking, and scal- able power infrastructure. Executives that previously considered AI to be a promising technology for their day-to-day operations are now seeing it deliver meas- urable results across all aspects of their businesses. As a result, businesses across various sectors and jurisdictions are planning and considering options to increase their AI investment. Lloyds Bank’s latest pub- lished annual Financial Institutions Sentiment Survey highlighted that more than half of financial institutions plan to increase their AI investment in the year ahead. Other key drivers of tech M&A include the pursuit of greater supply chain resilience and intensifying com- petition, both of which are encouraging companies to expand their market presence. Businesses are pursuing cross-border mergers, acquisitions and investments at record levels to access new markets, diverse talent pools and strategic technologies. These businesses are increasingly willing to navigate regulatory complexity to leverage global opportunities for innovation and growth – and given the pace of technological innovation, the pressure to move quickly has never been greater.
Tech M&A Value and Volume Tech remains the most targeted sector for M&A by value and volume, characterised by an upward trend in global deal activity and investment through 2025. According to Mergermarket’s recently published M&A Highlights for Q3 2025, tech M&A led all sectors with approximately USD809 billion worth of deals com- pleted as of Q3 2025, which accounted for 24% of global M&A volume. Deal value rebounded strongly with the technology sector leading all others on value. Mega-deals (over USD1 billion) have surged, reflecting a market trend towards fewer, larger and more strategic transactions prioritising high-value acquisitions, particularly in AI infrastructure, cybersecurity and cloud services. While the USA continues to have a dominant lead in deal value – led by strategic buyers that are looking to cre- ate vertically integrated businesses through acquisi- tions – the surge in tech megadeals has been reflected globally, as seen in several landmark transactions announced in 2025. Some examples of recent tech megadeals in 2025 include: • Google’s USD32 billion bid for Wiz in March; • Japanese conglomerate Nippon Telegraph & Tel- ephone (NTT) Corp’s USD16.5 billion acquisition of the remaining shares in IT services provider NTT Data Group Corp in June; • Meta’s acquisition of 49% of Scale AI for USD14.3 billion in June; • Palo Alto Networks’ USD24.5 billion acquisition of Israel’s CyberArk Software in July; and • KKR’s USD6.5 billion acquisition of UK-based Spectris PLC, which is expected to be completed in Q1 2026. The surge in tech M&A is also extending into adjacent industries, including the utilities and energy sector. For example, the heightened demand for AI data centres is driving a corresponding need for greater electricity supply. This trend is reflected in a 38% year-on-year increase in utilities and energy M&A activity, accord- ing to Mergermarket. Notable transactions illustrating this dynamic include Constellation Energy’s USD29.4 billion acquisition of Calpine in January, as well as Baker Hughes’ USD13.8 billion acquisition of Chart Industries announced in July.
6 CHAMBERS.COM
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