Tech, Media & Telecom | M&A Update | PCE Investment Bankers

Executive Summary

Technology, Media & Telecommunications M&A remained active in Q2 2026, supported by sustained buyer demand for scaled software, digital infrastructure, and data-centric platforms. Valuations remained disciplined on earnings, while AI-enabled, cybersecurity, and infrastructure-critical platforms continued to command premium multiples. Strategic acquirers remained the dominant consolidators, while sponsors were selective – concentrating capital in software, digital infrastructure, and data-centric platforms with sticky, recurring revenue and defensible market positions. Overall, capital concentrated around scaled technology platforms with differentiated capabilities and clear competitive advantages.^{1 2 3 4}

According to Joe Anto, Managing Director at PCE: “During Q2, transaction activity continued to be driven by companies seeking scale, expanded capabilities, and access to new markets. Buyers remain disciplined in evaluating opportunities, but high-quality businesses with differentiated technology and recurring revenue profiles continue to attract strong interest.”

Market Dynamics

Deals totaled 2,534 on an Q2 2026 LTM basis, down from 2,748 a year earlier, reflecting a more selective transaction environment. Valuations showed modest expansion, with LTM median EBITDA multiples increasing from 15.30x to 16.82x, and revenue multiples increasing from 2.82x to 3.00x. Strategic buyers concentrated on enterprise software, digital infrastructure, and data-centric platforms, while financial sponsors selectively pursued software and infrastructure assets where recurring revenue and defensible margins support near-term value creation.^{1 2 3}

Buyer Landscape

Strategic Acquirers: Strategic buyers represented 89.03% of Q2 2026 LTM transactions, maintaining their dominant role as the primary consolidators across technology, media, and telecom. Activity concentrated in software, digital infrastructure, and data-centric platforms as acquirers pursued scalable businesses with strong market positions and differentiated capabilities.¹

Financial Buyers: Financial sponsors accounted for 8.25% of Q2 2026 LTM volume, deploying capital selectively into software, digital infrastructure, and data-centric platforms with sticky, recurring revenue. Sponsor selectivity persisted as underwriting increasingly stressed free cash flow conversion, capital intensity, and execution risk, with investors continuing to prioritize resilient businesses with clear value-creation opportunities.^{1 2}

Industry Comparison

TMT dealmaking in Q2 2026 continued to outpace the broader M&A market, with the sector representing 17.4% of overall deal volume in Q2 and 17.1% on an LTM basis, underscoring its sustained strategic importance relative to other industries. Buyer confidence remained strong, with both strategic and financial acquirers pursuing high-conviction opportunities as AI adoption, digital infrastructure investment, and software platform consolidation continued to shape the current deal environment.^{1 2}

Geographic Expansion

Top U.S. States: California led TMT deal activity with 535 Q2 2026 LTM transactions, followed by New York (254), Texas (189), Florida (148), and Massachusetts (106), reflecting continued concentration in established technology hubs supported by deep talent pools, robust venture ecosystems, and ongoing investment in digital infrastructure.^{1 2}

Cross-Border Trends: International buyers played a notable role in Q2 2026, highlighted by Sweden-based EQT’s $4.3 billion acquisition of Crown Castle Inc.’s Small Cells Solutions business and India-based Coforge's $2.4 billion acquisition of Encora Digital LLC, signaling continued foreign appetite for U.S. software, digital infrastructure, and AI-enabled platforms across a range of deal sizes and geographies.^{1 2 3}

Notable Transactions

Largest Transactions Closed

Other Financial Buyer Transactions Closed

Other Strategic Buyer Transactions Closed

Emerging Trends

Key trends shaping Tech, Media and Telecom M&A:

1. AI Operationalization & Enterprise Deployment
   Enterprises continued shifting from AI experimentation toward scaled deployment, driving demand for software platforms with embedded AI capabilities, defensible data assets, and mission-critical workflows. Buyers increasingly prioritized businesses that enable AI adoption at scale.^{2 3 4}
2. AI-Enabled Software & Platform Consolidation
   Software M&A remained active as buyers increasingly differentiated between platforms with strong AI positioning and those more vulnerable to disruption. Capital concentrated around platforms with embedded workflows, sticky recurring revenue, and high switching costs.^{2 3 4}
3. Digital Infrastructure Investment
   Demand for fiber, data centers, and connectivity assets remained strong as enterprises and hyperscalers invested to support AI-driven workloads. Infrastructure assets continued to attract both strategic and financial buyers.²
4. Data Architecture & AI Governance
   Organizations increasingly focused on strengthening data architecture, governance frameworks, and interoperability as AI adoption accelerated. Regulatory requirements and cybersecurity considerations continued to influence diligence priorities and investment decisions.^{2 3}
5. Subsector Spotlight: Cybersecurity & Data Platform Consolidation
   Strategic acquirers continued consolidating cybersecurity and data-centric vendors into integrated platforms to meet growing enterprise demand for security, operational visibility, and AI-enabled decision making.^{2 3}
6. Subsector Spotlight: Take-Privates & Sponsor Investment
   Financial sponsors remained active buyers of software, digital infrastructure, and enterprise technology platforms, focusing on businesses with recurring revenue, strong cash flow profiles, and clear value-creation opportunities.²

Outlook for Next Quarter

Opportunities: Continued enterprise AI adoption, digital infrastructure investment, and software platform consolidation should support strategic M&A activity through the remainder of 2026. Demand is expected to remain strongest for enterprise software, cybersecurity, data analytics, and digital infrastructure assets that enable AI deployment at scale.^{2 3 4}

Risks: Regulatory complexity, evolving AI governance requirements, geopolitical uncertainty, and elevated financing costs may continue to pressure transaction execution and diligence timelines. Buyers are expected to remain disciplined, particularly for businesses lacking differentiated technology, durable revenue models, or clear paths to AI-enabled growth.^{2 3}

Predicted Activity: Dealmaking will remain active but selective as strategic buyers and financial sponsors concentrate capital around software, digital infrastructure, and cybersecurity / data-centric platforms. Cross-border interest in U.S. technology assets, sponsor-backed take-privates, and infrastructure carve-outs are expected to remain key drivers of the transaction pipeline through year-end.^{1 2 3}

PCE Transactions

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