Tech M&A Expected to Surge in 2025, with AI as a Key Focus
Mergers and acquisitions within the enterprise technology sector are anticipated to accelerate in 2025. Analysts at Wolters Kluwer’s CT Corporation attribute this uptick to several factors, including private equity firms seeking to deploy capital accumulated during a period of economic uncertainty following numerous 2024 national elections. Additional catalysts include the prospect of decreasing interest rates in both the US and Europe, and the expectation of a supportive regulatory environment.
While some deals may face government scrutiny, particularly those involving AI and national security, the general trend points towards increased deal-making. Bain & Company’s Global M&A Report 2025 notes that many large technology mergers are focused on expanding the scope of a company’s offerings rather than simply increasing its size. This strategy allows sales teams to cross-sell products, frequently using AI to heighten efficiency. However, strict AI regulations, such as those in Europe, introduce compliance complexities that acquirers must consider, particularly in cross-continental deals.
Here’s a look at significant technology M&A deals from 2024 and 2025:
Notable M&A Deals
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February 2025: IBM Acquires HashiCorp. IBM completed the $6.4 billion acquisition of HashiCorp, a company known for its Terraform infrastructure automation tool. This acquisition is set to bolster IBM’s focus on hybrid cloud and AI, with HashiCorp’s technologies integrated into IBM’s offerings, including Red Hat, watsonx, data security, IT automation, and consulting services.
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February 2025: IBM to Acquire DataStax. IBM announced plans to acquire DataStax. This deal will aim to enhance IBM’s generative AI capabilities. DataStax offers AstraDB, a database-as-a-service built on Apache Cassandra, and Langflow, a no-code platform for AI application development.
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February 2025: MongoDB Acquires Voyage AI. MongoDB acquired Voyage AI to support enterprises in building AI applications that are free from incorrect outputs (hallucinations). The acquisition leverages Voyage AI’s expertise in retrieval-augmented generation (RAG) to improve data accuracy.
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February 2025: SolarWinds to Be Acquired for $4.4 Billion. SolarWinds, a provider of IT service management (ITSM) and security information and event management (SIEM) software, has agreed to a $4.4 billion acquisition by Turn/River Capital.
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February 2025: Sophos Completes Purchase of Secureworks. Sophos completed its $859 million acquisition of Secureworks. This acquisition allows Sophos to incorporate Secureworks’ XDR (Extended Detection and Response) products into its portfolio, becoming a leading provider of MDR (managed detection and response) services.
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February 2025: Databricks Acquires BladeBridge. Databricks acquired BladeBridge, a data platform software provider. This acquisition aims to assist enterprises in transitioning from rival data warehouses to Databricks’ platform.
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January 2025: US Justice Dept Blocks HPE’s Acquisition of Juniper Networks. The US Department of Justice blocked Hewlett Packard Enterprise’s (HPE) plan to acquire Juniper Networks, citing concerns about competition in the wireless networking market. HPE had sought to acquire Juniper’s AI network management tools.
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January 2025: Lenovo Buys Infinidat. Lenovo acquired Infinidat, an enterprise storage company whose products include InfiniBox, for data protocol unification, and InfiniGuard, for data protection. The value of the deal is reported to be up to $1.6 billion.
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December 2024: Cisco Buys SnapAttack. Threat detection startup SnapAttack was acquired by Cisco, further developing its security business.
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September 2024: SAP Acquires WalkMe. SAP completed the acquisition of WalkMe, a digital adoption software developer. The acquisition aims to improve SAP’s offering, to customers looking to maximize the value of their applications.
