Technology sector continues to drive deal value for this year
Despite the ongoing uncertainty surrounding tariffs, the technology sector continues to demonstrate resilience. So far in 2025, the technology sector has been a top performer with 165 deals valued at more than US$100m+ and a cumulative deal value of US$236b. Roughly 56% of April’s billion-dollar-plus deals by value were from the technology sector. Businesses are ramping up their investments in AI-powered innovations, cloud infrastructure and cybersecurity solutions that play a critical role in long-term growth and competitiveness.
Companies are using strategic divestment to unlock value
Tariffs have introduced significant volatility in global trade, forcing businesses to reassess their cost structures and competitive positioning.
Companies are streamlining their portfolios and focusing on core operations by divesting non-core businesses to improve financial stability and allocate resources more effectively. Pressure on boards from activist investors continues to drive spin-offs, carve-outs and subsidiary sell offs. Sponsors are helping companies address immediate supply chain and operational challenges and explore strategic long-term shifts. Portfolio companies are also reevaluating manufacturing footprints.
Geopolitical dynamics reshaping M&A landscape
The geopolitical landscape is weighing on corporations; requisite asset realignment and supply chain challenges today may present opportunity tomorrow.
Globally, conflicts and instability, combined with trade negotiations, may mean companies need to consider a complex business reassessment. This might include assessing risk scenarios and the impact on profitability. National security concerns are crucial in M&A considerations including the location of mission-critical assets, and the safety and reliability of supply chains and trade routes.
There could be M&A opportunities in the uncertainty as well. For example, rising government defense budgets in response to heightened geopolitical tensions could boost US deal activity within the aerospace and defense (A&D) sector.