Mid-market technology, media and telecommunications (TMT) dealmaking in 2025 sent a clear signal: capital is not retreating, it is concentrating.
The latest review of global TMT mergers and acquisitions (M&A) by Baker Tilly International, produced in conjunction with Mergermarket, shows that in an environment shaped by geopolitical tension, regulatory fragmentation and macroeconomic caution, investors are demonstrating strategic conviction. They are prioritising scale, ecosystem depth and cross-border opportunity in technology assets, even as broader mid-market M&A softens.
Geographically, mid-market TMT remains more concentrated than overall mid-market activity.
That concentration is not incidental – it reflects where technology ecosystems are most mature, where exit pathways are proven, and where buyers see long-term structural growth.
North America: The anchor market
In 2025, North America accounted for 46% of global mid-market TMT deal value and 45% of volume – significantly higher than its 33% share of value and 31% share of volume across all mid-market sectors.
This outperformance underscores the structural strength of the region’s technology ecosystem, explains Mike McIsaac, partner, Baker Tilly in Canada.
“A deep pool of scalable assets, sophisticated private equity platforms, active corporate buyers and reliable capital markets continue to reinforce North America’s leadership.
“In a fragmented global environment, legal certainty and established exit routes further enhance its appeal.”
The message is clear: when investors seek resilience and growth, North American TMT leads allocation.
Asia: Selective weighting amid complexity
Asia’s position in mid-market TMT remains comparatively underweight relative to its broader M&A footprint.
The region captured 24% of deal value and 26% of volume in mid-market TMT, versus 34% and 37%, respectively, across all sectors.
This reflects both opportunity and complexity.
“Asia offers compelling high-growth technology markets and digital adoption tailwinds,” says Michael Sonego, executive director, Pitcher Partners (Australia).
“At the same time, regulatory divergence, geopolitical sensitivities and structural variations across sub-regions introduce additional layers of diligence and execution risk.
“Activity levels suggest selectivity rather than retreat. Investors are engaging, but with discipline, focusing on platform acquisitions, intellectual property and assets that offer regional or global scalability.”
Western Europe: Stability and strategic flow
Western Europe continues to play a steady and pivotal role.
In 2025, the region accounted for 21% of mid-market TMT deal value and 20% of volume, broadly aligned with its overall mid-market M&A share.
Its significance, however, extends beyond proportional stability.
“Western Europe sits at the centre of global cross-border TMT flows, acting as both a major destination for inbound capital and a meaningful source of outbound investment,” explains Olivier Willems, CEO, Baker Tilly in Belgium.
“The region’s established mid-sized technology companies, regulatory transparency, and integration within global supply chains, position it as a natural hub for international dealmaking.”
Cross-border activity proves resilient
Perhaps the clearest signal of conviction lies in cross-border activity.
While geopolitical risk and economic uncertainty have weighed on global M&A, mid-market TMT has proven comparatively resilient.
In 2025, cross-border mid-market TMT deal value rose 7% year-on-year to US$87.5bn. By contrast, cross-border deal value across all mid-market sectors declined 2% over the same period. Volumes fell modestly in both segments – down 2% in TMT (869 deals) and 4% across all sectors – but the divergence in value growth is telling.
Strategic necessity is increasingly overriding macro hesitation.
Technology assets remain critical to competitive positioning, digital transformation and long-term productivity gains. As a result, TMT stands out as one of the most internationally mobile segments of the mid-market.
Beneath headline figures, capital flows reveal where buyers are prioritising exposure.
Western Europe remains the beating heart of cross-border mid-market TMT, with inbound deal value holding steady at US$33.3bn and outbound investment rising 9% to US$26.4bn, reflecting its dual role as both a destination and source of capital.
North America continues to attract global attention as a defensive growth market, with inbound deal value climbing 20% to US$21.6bn and volumes rising, supported by strong flows from Western Europe (+12%) and Asia (+53%).
Asia demonstrates selective inbound stability alongside growing outbound ambition: inbound TMT deal value edged up 1% to US$18.7bn, while outbound activity surged 16% to US$17.4bn, driven by acquisitions of intellectual property, international customers and scalable platforms.
Emerging regions, including the Middle East, South America, Africa and Central and Eastern Europe, remain opportunistic rather than structural, together accounting for single-digit shares of value and volume. Yet pockets of growth can be seen, with Middle East inbound up 37% and South America up 48%, even as Central and Eastern Europe dipped 30%.
Where capital flows, conviction follows
Capital is clustering in mature ecosystems, flowing across borders despite macro headwinds, and increasingly favouring jurisdictions that offer legal certainty, scalable assets and predictable exits.
While broader mid-market M&A shows signs of cooling, TMT stands apart.
Technology remains mission-critical and investors are behaving accordingly.
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