Global TMT M&A value up 73% to US$1.6tn in 2025
Global TMT M&A volume down 4% to 10,641
24% of TMT deals in 2025 were in the mid-market, up from 22% in 2024
TMT mid-market M&A deal value up 15% to US$239bn
While globally, mergers and acquisitions (M&A) in the technology, media and telecommunications (TMT) sector saw a major increase of over 70% to US$1.6tn in 2025, it wasn’t just about mega deals. New research released today from Baker Tilly International, in conjunction with Mergermarket, shows that mid-market M&A in the TMT sector also held up remarkably well last year despite an uncertain economic environment, with increases in both deal volumes and dollar value.
This increase in activity stands in contrast to the more subdued performance of the global mid-market overall, where deal volume rose by around 2% and values increased by just 5%.
Baker Tilly is predicting this uptick will become even stronger in 2026 driven by developments in artificial intelligence (AI) and cyber security an easing in interest rates, renewed activity in the private equity (PE) market and increased CEO confidence.
As Harsh Maheshwari, global head of advisory, Baker Tilly International explains: “Mid-sized TMT assets are proving particularly attractive, offering established platforms, proven revenues and clear growth runways.”
Geographical differences
North America is the clear anchor market for mid-market TMT. In 2025, it accounted for 46% of global TMT mid-market deal value and 45% of volume, well ahead of its 33% share of value and 31% of volume across all mid-market sectors. The depth of the region’s technology ecosystem and sustained appetite from private and corporate buyers are key drivers in the deal market.
Asia remains underweighted in TMT. The region captured 24% of mid-market TMT deal value and 26% of volume, compared to 34% and 37% respectively, across all sectors. Activity reflects a mix of high-growth opportunities amid regional variation in regulatory regimes and other structural complexities.
Western Europe continues to provide stable, mid-sized TMT deal flow. The region accounted for 21% of mid-market TMT deals and 20% of volume in 2025. This is in line with its share of total mid-market M&A, underscoring the region’s role as a steady source of established technology businesses.
One sub-sector dominates
Software is the backbone of the TMT mid-market and continues to outperform most other sub-sectors by considerably large margins in both value (77%) and volume (80%) terms. Year-on-year, mid-market software deals rose more than 20% to reach around US$184bn in 2025. Volumes (1,988 deals) posted modest but steady growth of 3%.
PE leads the charge among TMT dealmakers
Likewise, PE continues to anchor mid-market TMT M&A, accounting for a disproportionate share of activity. In 2025, PE buyouts were 60% of mid-market TMT deal volume and 52% of total value, underscoring the sector’s appeal to financial sponsors. By comparison, PE buyouts accounted for just 34% of transactions and 30% of buyout values across the wider mid-market, highlighting the extent to which private capital remains focused in technology-led assets.
Indeed, PE appetite has remained resilient. While TMT buyout volumes were effectively flat in the mid-market over the past year – with 1,493 deals in 2025 and 1,492 in 2024 – deal values rose 24% year-on-year to reach US$123.4bn in 2025. This compares with a 1% decline in buyout volume across all mid-market sectors, alongside a more modest 12% increase in buyout value. This divergence highlights a sustained PE conviction for TMT targets, with firms committing more capital per deal in pursuit of scalable platforms, recurring revenues and clear paths to international expansion.
The outlook for 2026
Harsh concludes: “The mid-market is the sweet spot for TMT M&A right now. Capital is ready to deploy, but it’s backing quality over quantity – scalable, AI-enabled and data-rich platforms with proven revenues and real growth potential. 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.”
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