The Great Tech Rebound: AI, Cybersecurity, and Vertical SaaS Redefine Software M&A
In this Technology M&A Industry Report, we explore the M&A activity from H1 2025 across our select areas of expertise within the Technology industry. Our Technology Practice Group experts share their insights on the current state of the Tech M&A market and look at the factors influencing the broader Tech industry.
Select Insights:
- AI and Cybersecurity Dominate Deal Strategies
Acquirers increasingly focused on software companies with advanced AI, cloud and cybersecurity solutions, seeking to expand digital capabilities, streamline operations and strengthen resilience in a rapidly evolving technology landscape.
- Tech IPO Resurgence
The technology IPO market rebounded strongly in the first half of 2025, surpassing the total capital raised in 2024. This resurgence, particularly in AI, has fueled optimism, sparked new financing discussions and supported increased capital deployment across the software landscape.
- Private Equity Accelerates Market Consolidation
Private equity firms remained highly active in the software M&A landscape, concentrating on acquisitions of niche players in areas like cybersecurity, health-tech and enterprise software. This consolidation strategy highlights private equity’s role in building scaled platforms with recurring revenues and long-term growth potential.
- Accelerated Software M&A Activity
The first half of 2025 saw a notable acceleration in software M&A, with deals closing faster and investor interest remaining high. Acquirers increasingly focused on companies with advanced AI, cloud and cybersecurity capabilities, as well as vertical SaaS platforms serving specific industries such as healthcare, logistics and enterprise services.
- Strategic Acquirers Focus on Vertical SaaS
Acquirers targeted vertical SaaS platforms to gain deeper industry expertise and offer tailored solutions, helping them retain customers more effectively. By focusing on these specialized platforms, companies can differentiate their offerings, strengthen competitive positioning and capture long term growth in a rapidly evolving software market.
To read the full Technology Industry Report, download below
If you are interested in discussing any of the analysis from this report, or if you would like to discuss your own transaction goals contact Thomas Lin, Director, of our Technology Practice.
Disclosure
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
