Valuation appetite declined modestly into Q4 2025 amid macro uncertainty, with LTM median TEV / EBITDA and TEV / Revenue of 14.68x and 2.73x, respectively, across 2,514 LTM transactions (551 in Q4). Despite sequential valuation multiple compression, activity levels remained resilient, underpinned by continued investor demand for scalable software, AI-enabled platforms, and mission-critical infrastructure assets even as financial conditions tightened.¹
Strategic acquirers continued to dominate deal activity, accounting for 89.54% of LTM transactions, supported by strong corporate balance sheets alongside AI-driven platform expansion and vertical integration strategies. Financial buyers represented 7.48% of LTM volume, reflecting ongoing sponsor selectivity amid higher-for-longer interest rates and disciplined underwriting, while undisclosed buyers (2.59%) and PE-backed strategics (0.40%) comprised the remainder.¹
Q4 2025 was highlighted by several large-scale, strategically transformative transactions, including Omnicom Group’s $18.2 billion acquisition of The Interpublic Group, Salesforce’s $10.1 billion purchase of Informatica, SoftBank’s $6.5 billion acquisition of Ampere Computing, Sanmina’s $3.0 billion acquisition of ZT Group’s data center manufacturing business, and ServiceNow’s $2.85 billion acquisition of Moveworks.
Additional highlights included the announcement of Netflix’s $82.7 billion acquisition of Warner Bros. Discovery, the largest media deal of the year, underscoring the sector’s pivot toward vertically integrated, at-scale platforms controlling both premium media content and global distribution. Paramount Skydance’s $108.4 billion hostile bid for Warner Bros. Discovery, which the WBD board has rejected as carrying higher execution risk, further highlights the intensifying competition for scarce, must-have media IP and introduced additional (albeit short-lived) uncertainty around the ultimate ownership of the Warner assets.
Structural trends accelerated during the quarter: enterprises moved decisively from AI experimentation toward operational deployment, hyperscalers and infrastructure players expanded capacity to support AI-driven compute demand, and media and telecom operators pursued consolidation to enhance scale, resiliency, and monetization amid regulatory, cybersecurity, and geopolitical pressures. Strategics prioritized AI enablement, data infrastructure buildout and workflow automation across the TMT landscape.¹ ² ³
Deal activity: 551 transactions closed in Q4 2025, bringing LTM volume to 2,514 transactions, down modestly from 2,751 a year earlier in a more selective transaction environment. Valuations: LTM median multiples declined to 14.68x EBITDA and 2.73x revenue, as buyers emphasized profitability, free cash flow conversion, and defensibility over growth-at-all-costs models.¹
Technology deal flow centered on AI-enabled software, data management platforms, cybersecurity, and data center infrastructure. Media transactions increasingly reflected portfolio rationalization, IP consolidation, and technology-enabled content distribution strategies while telecom activity was driven by spectrum, fiber, and infrastructure investments amid supply-chain localization, sovereignty considerations, and heightened regulatory scrutiny.² ³
Strategic Acquirers: 2,261 of 2,514 LTM transactions (89.94%). Concentrated in software, AI platforms, cloud / data centers, and telecom infrastructure.
Financial Buyers: 188 of 2,514 (7.48%). Sponsors focused on resilient SaaS, payments, and data-centric platforms with sticky, recurring revenue.
Undisclosed Buyers: 65 of 2,514 (2.59%). Active primarily in mid-market digital media, IT services, and ERP / vertical application software.¹
TMT transaction volume declined modestly year-over-year; however, industry transactions represented 17.6% of overall deal volume in Q4 2025 and 18.3% on an LTM basis, underscoring the sector’s sustained strategic importance relative to the broader M&A market. Valuation compression stabilized during the quarter as buyers recalibrated expectations around growth, capital intensity, and execution risk.¹ ²
Top U.S. states by seller count (LTM): California (530), New York (249), Texas (195), Florida (139), and Massachusetts (101). The Southeast and broader Sunbelt continued to see elevated activity, supported by talent migration, favorable tax environments, and expanding data center and infrastructure investment.¹
Cross-border buyers remained active, particularly from Canada, Europe, and Asia, targeting U.S.-based software, AI infrastructure, data center manufacturing, and digital media assets.² ³
| Target | Buyer | Value ($mm) |
| The Interpublic Group of Companies, Inc. | Omnicom Group Inc. | $18,199.03 |
| Informatica Inc. | Salesforce, Inc. | $10,097.75 |
| Ampere Computing LLC | SoftBank Group Corp. | $6,500.00 |
| DataCenter Infrastructure Manufacturing Business of ZT Group Intl, Inc. | Sanmina Corporation | $3,000.00 |
| Moveworks, Inc. | ServiceNow, Inc. | $2,850.00 |
| Target | Buyer | Value ($mm) |
| Paramount Skydance Corporation | Redbird Capital Partners Management LLC | $4,500.00 |
| DIRECTV Entertainment Holdings LLC | TPG Capital, L.P. | $2,500.00 |
| Olo Inc. | Thoma Bravo, L.P. | $1,979.89 |
| Couchbase, Inc. | Haveli Investment Management LLC | $1,531.90 |
| Cvent Holding Corp. | Blackstone Inc. | $1,300.00 |
| Target | Buyer | Value ($mm) |
| Wireless Operations and Select Spectrum Assets of United States Cellular Corporation | T-Mobile US, Inc. | $4,400.00 |
| Skydance Media, LLC | Paramount Skydance Corporation | $3,743.77 |
| Reorganized ISA S.A. | SES S.A. | $3,419.24 |
| Automotive Ethernet Business of Marvell Technology, Inc. | Infineon Technologies AG | $2,500.00 |
| E2open Parent Holdings, Inc. | WiseTech Global Limited | $2,417.96 |
Source S&P Capital IQ as of 1/2/2026 and PCE Proprietary Data
Opportunities: AI-native software, data infrastructure, cybersecurity, and fiber / edge telecom assets are expected to remain attractive to strategic buyers and selective sponsors .2 3
Risks: Persistent geopolitical tension, regulatory fragmentation, supply-chain constraints, and elevated financing costs may elongate deal timelines and suppress leverage.2 3
Predicted Activity: Continued strategic consolidation in AI infrastructure and enterprise software, targeted sponsor-led add-on acquisitions in SaaS and data platforms, and sustained cross-border interest in U.S. technology and infrastructure assets.1 2 3
Joe Anto |
Eric Zaleski |
Jon Gogolak |
Ali Masoud |
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Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
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