TMT dealmaking gets bigger, bolder and more selective

Global technology, media and telecommunications (TMT) dealmaking is entering a new phase – one defined less by volume and more by conviction.  

Buyers are no longer focused on how much they acquire, but on what they are prepared to bet big on. 

The latest review of global TMT mergers and acquisitions (M&A) by Baker Tilly International, produced in conjunction with Mergermarket, shows total global TMT deal value climbed to US$1.6 trillion in 2025, even as overall deal volumes declined. 

At the centre of this strategic recalibration sits the mid-market.  

With TMT mid-market deal value rising 15% year-on-year and volumes edging up 3%, 2025 marks not just a recovery, but a refocus on quality, scale and strategic relevance. 

The stakes have changed 

Across sectors, technology has shifted from an enabler to a non-negotiable competitive foundation.  

Mid-sized TMT assets are proving particularly attractive, offering established platforms, proven revenues and clear growth runways. 

As a result, both private equity and strategic buyers are gravitating towards businesses that combine resilience today with scale potential tomorrow. 

Deal drivers 

1. AI (artificial intelligence) that works  
   Buyers want AI embedded into real products and processes, underpinned by strong data, infrastructure and a clear path to revenue or efficiency gains. 

2. Cybersecurity and compliance by design 
   With data volumes exploding and regulation tightening, assets that strengthen security, resilience and compliance are commanding premium valuations. 

3. Scalable, data-rich platforms 
   Recurring revenues, defensible data assets and international scalability are now table stakes in the mid-market. 

4. Deal resilience in a fragmented world 
   Geopolitics and regulation are reshaping cross-border M&A. Buyers are prioritising assets that can grow despite policy complexity and jurisdictional risk. 

5. Fewer deals, higher conviction 
   Both private equity and corporates are deploying more capital into fewer transactions, favouring quality, defensibility and long-term strategic fit over volume. 

What’s next?  

Looking ahead to 2026 and beyond, mid-market TMT is set to remain one of the most dynamic segments of global M&A. As valuation expectations normalise and buyer-seller alignment improves, capital is ready to deploy, but only where the strategic case is compelling. 

The winners will be those who pair sector expertise with regulatory fluency and disciplined execution. Buyers able to identify assets that genuinely accelerate growth, resilience and digital transformation will uncover a deeper, higher-quality pipeline. 

In a market increasingly defined by selective conviction rather than broad-based activity, mid-market TMT is fast becoming the proving ground for the next wave of technology-driven value creation.