Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
M&A activity in the TMT sector accelerated in Q2 2025, with 2,175 transactions closed over the last twelve months up from 1,967 in Q2 2024, reflecting a return to growth and renewed buyer confidence. Strategic buyers continued to dominate, accounting for over 89% of deal volume, as consolidation remained strong across cloud infrastructure, enterprise software, and digital media. Financial sponsors also remained active, targeting scalable, tech-enabled platforms in AI, cybersecurity, and SaaS. Valuation multiples held steady, with a median TEV/EBITDA of 14.90x and TEV/Revenue of 2.74x, indicating sustained investor interest in high-growth, margin-stable business models. The following sections explore the trends shaping this momentum.
Market Dynamics
Amid sharply higher tariffs, which have greatly increased from historical levels, many strategic and financial buyers are adopting a cautious, wait-and-see stance, slowing M&A activity and prompting dealmakers to reassess strategies. Yet, despite the caution, large-scale strategic TMT transactions continue moving forward, underpinned by strong fundamentals in AI, telecom infrastructure, and cloud infrastructure, demonstrating how high-quality, tech-driven assets remain compelling even as macroeconomic headwinds build.
Buyer Landscape
Strategic Acquirers: Strategic buyers drove 1,939 transactions, focused on software, AI enablement, and telecom infrastructure, exemplified by deals such as DoorDash’s $1.2B acquisition of SevenRooms and Databricks’ $1.0B purchase of Neon.
Financial Buyers: Private equity firms participated in 186 deals, maintaining a focus on recurring-revenue and vertical SaaS platforms. Notable transactions included Turn/River’s $4.7B acquisition of SolarWinds, reinforcing sponsor appetite for scalable enterprise software.
Industry Comparison
The TMT sector continued to gain share in overall M&A activity, with 2,175 transactions accounting for 15.9% of total market volume, up from 15.6% the last quarter. This growth reflects continued investor appetite for scalable, tech-driven assets despite persistent macroeconomic uncertainty.
Geographic Expansion
Top U.S. States: California (400 deals), New York (191), and Texas (161) led the nation in TMT deal activity, underscoring their continued dominance as innovation and investment hubs across software, digital media, and telecom.
Regional Trends: The Southeast continued to gain momentum, with Florida (112 deals) and Georgia (49) showing strong growth. Favorable tax environments, lower operating costs, and expanding tech talent pools are positioning the region as an increasingly attractive destination for TMT investment.
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value ($mm) |
| Digital Global Systems, Inc. | Casa Del Fuego Family Office & Trust LLC | $5,000.00 |
| SolarWinds Corporation | Turn/River Management, L.P. | $4,678.82 |
| Games Business of Niantic, Inc. | Scopely, Inc. | $3,500.00 |
| Liberty TripAdvisor Holdings, Inc. | Tripadvisor, Inc. | $3,373.81 |
| Multiven, Inc. | Photon AI Ltd. | $2,200.00 |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| RevSystems, LLC. | McDonagh Family Office | n/a |
| Lodging Solutions, LLC | Haveli Investment Management LLC | n/a |
| OculusIT LLC | Avathon Capital Management LP | n/a |
| Best Money Moves, LLC | The Anchor Group | n/a |
| Social Annex, Inc. | Edited capital | n/a |
Other Financial Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Enfusion, Inc. | Clearwater Analytics Holdings, Inc. | $1,598.98 |
| NinjaTrader, LLC | Payward, Inc. | $1,500.00 |
| Weights and Biases, LLC | CoreWeave, Inc. | $1,400.00 |
| SevenRooms Inc. | DoorDash, Inc. | $1,200.00 |
| Neon, Inc. | Databricks, Inc. | $1,000.00 |
Source S&P Capital IQ as of 7/7/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Tech, Media and Telecom M&A:
- Quantum AI Integration
Investors increasingly view quantum computing as integral to future AI infrastructure, anticipating a multi-billion-dollar convergence that is influencing strategic tech partnerships and deals. - Mobile & Consumer Gaming M&A
Mobile gaming continues to outperform, with Q2 M&A deal value reaching approximately $6.6 billion, underscoring ongoing investor enthusiasm for high-growth entertainment platforms . The volume and size of recent deals reflect confidence in robust consumer engagement and monetization opportunities. - Big Beautiful Bill
The recently passed “Big Beautiful Bill” is expected to catalyze growth across the TMT sector—particularly in telecom infrastructure and AI by driving investment, innovation, and consolidation. However, it also introduces new regulatory complexities and long-term fiscal questions, underscoring the need for companies and investors to carefully assess both the opportunities and potential challenges emerging under the evolving policy environment. - Subsector Spotlight: Surveillance & AI
Significant new federal investments are being channeled into AI-powered surveillance and border-control technologies, with major contracts totaling more than $22 billion expected to benefit leading Silicon Valley companies like Palantir and Anduril. This trend will further solidify their roles as dominant providers of advanced government tech. - Subsector Spotlight: Cyber Security
In June 2025, the cybersecurity sector saw a strong deal-making pace, with 41 M&A transactions announced, signaling active consolidation of AI-driven security technologies. These deals primarily targeted platforms featuring AI-powered threat detection, cloud security, and incident response capabilities, reflecting growing market demand for advanced, integrated defense solutions.
Outlook for Next Quarter
Opportunities: Companies are accelerating acquisitions of AI-augmented solutions, such as AI-enhanced forecasting and automation tools, to boost efficiency and meet rising ESG compliance demands. These deals reflect the growing need for tech-driven operational resilience and sustainability reporting.
Risks: Persistent geopolitical uncertainty and supply-chain disruptions particularly in semiconductors are intensifying cybersecurity and IP protection concerns, raising operational risks for TMT firms.
Predicted Activity: Despite a drop in overall TMT deal volume, the aggregate M&A deal value rose by 26% in H1 2025, signaling sustained interest in large-scale, strategic acquisitions, especially in AI and telecom infrastructure.
PCE Transactions
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