SAN FRANCISCO (December 9, 2025) – Morrison Foerster, a leading global law firm, today announced the results of its annual Tech M&A Survey conducted in conjunction with Mergermarket, which analyzed the shifting dynamics of technology M&A worldwide. The report reveals a market gaining momentum in value, increasingly shaped by the rapid adoption of artificial intelligence across industries, a tightening regulatory environment globally, and strategies aimed at mitigating downside risk. Aggregate deal value rose by 60.2% in the first three quarters of 2025 to $787.1 billion and the majority of survey respondents expect tech M&A deal volumes and average deal size to maintain this momentum and increase over the next 12 months.
“As macroeconomic and geopolitical cycles accelerate in 2025, competition for high-quality assets is intensifying worldwide,” noted Erik Knudsen, co-chair of Morrison Foerster’s global M&A practice. “In tech M&A, dealmakers are becoming increasingly selective, focusing on strategic investments that can deliver long-term competitive advantage. With AI and digital infrastructure shaping the future of the industry, investors are prioritizing opportunities that position them at the forefront of innovation.”
“AI continues to attract significant attention within and outside the technology sector,” said Tessa Schwartz, co-chair of Morrison Foerster’s Artificial Intelligence Group. “We are seeing substantial investment in the infrastructure that supports AI and companies that are accelerating integration of AI into their products and services. Innovation is being defined by leadership in AI.”
Key Takeaways
- AI Gold Rush and Regulation: With 70% of respondents selecting AI as a top-three subsector for opportunity, it has leapfrogged cybersecurity to claim the top spot in this year’s research. Interestingly, concerns around regulation are not suppressing AI dealmaking. In fact, a slim majority (51%) say increased regulatory oversight would make them more likely to pursue AI-related M&A, compared to just 12% who responded that it would lessen their interest.
- Return to Form: More than half of survey respondents (57%) expect tech M&A deal volumes to increase over the next 12 months. Nearly two-thirds (64%) expect the average value of tech M&A transactions to rise over the same time period.
- Startup Season: Respondents continue to indicate a marked preference for targeting young companies (those operating for between two and five years) in M&A. This year, startups are clearly in the lead, garnering 50% of first-choice votes. Dealmakers are looking to capitalize on the high-growth opportunities of industry disruptors in subsectors such as AI and cybersecurity.
- Limiting Risk: Dealmakers expect to be increasingly likely to employ minority investments (97%) and contingent consideration/earnouts (84%) in their tech M&A strategies over the coming 12 months. Their corporate peers intend to focus much more on joint ventures (84%) as they continue to pursue growth while limiting their risk exposure.
- Europe and Asia Gain Ground: Europe and Asia gain momentum as deal origination hubs, with Europe receiving 65% of first-, second-, and third-choice votes, and Asia (excluding China and Japan) in second place at 56%. Still, North America received the second most first-choice votes (25%) and remains the overwhelming choice for 92% of U.S. dealmakers. Global tech M&A is becoming more distributed and for buyers seeking differentiated opportunities, the next big deal or technology may come from anywhere.
To download the full survey results with additional insights, visit: What’s The Forecast for Tech M&A?.
