Technology M&A rebounded strongly in 2025, with global deal value rising to approximately $1.08 trillion, up about 66% year-over-year. The surge was driven largely by hyperscaler investment in AI infrastructure, record levels of private equity dry powder exceeding $2 trillion, and the increasing strategic importance of artificial intelligence across the technology ecosystem. As companies race to build AI capabilities and modernize their platforms, acquisitions across hardware, SaaS, AI, and IT services have accelerated, reshaping the competitive landscape.
Looking ahead to 2026, deal activity is expected to remain strong as organizations pursue AI-driven platform consolidation, infrastructure expansion, and specialized talent acquisitions. Mid-market companies, particularly those with proprietary technology, vertical AI applications, and strong recurring revenue models, are becoming attractive targets for both strategic buyers and private equity firms. As financing conditions stabilize and demand for AI-enabled solutions continues to grow, the technology M&A market is positioned for another year of active dealmaking and strategic investment.