US technology mergers and acquisitions (M&A) bounced back in 2025, reaching a total of $543 billion, the highest level since 2021, according to a report from The Information, which cited aggregated deal-tracking databases.
The rebound has been fueled by increasing investments in AI, with companies targeting data centers, software, and other infrastructure to support rapid innovation, per the report. Lower financing costs, strong corporate balance sheets, and rising CEO confidence also contributed to deal activity.
Billion-dollar transactions experienced a notable jump, rising 146.5% year-over-year in October 2025.
Tech M&A represented nearly 21% of global deal value in 2024, with US software-focused private equity deals up 32% amid AI-related initiatives, setting the stage for continued expansion in 2025.
Private equity firms remained active in both healthcare and technology sectors, while corporate buyers dominated larger transactions.
Projections indicate overall deal volumes could rise around 9% in 2025, according to The Information’s report.
Several high-profile deals were highlights of the year’s activity. Alphabet Inc (NASDAQ:GOOG) acquired Wiz for $32 billion to enhance AI-driven cloud security capabilities. Hewlett Packard Enterprise Co (NYSE:HPE, XETRA:2HP) purchased Juniper Networks for $13.4 billion to strengthen its AI networking offerings.
Stripe’s approximately $1 billion acquisition of Metronome focused on SaaS billing solutions, and ServiceNow’s $1 billion deal for Veza targeted AI security needs.
Activity also extended to the enterprise software, telecom, and crypto sectors, with acquisitions such as OpenAI's purchase of Neptune and Anthropic’s acquisition of Bun.
The report highlighted that dealmaking momentum is expected to continue into 2026, supported by stable interest rates, predictable antitrust reviews, and continued opportunities in AI-driven areas such as cybersecurity and consumer technology. Divestitures, particularly tax-free spin-offs, are expected to increase.