December 1 2025 | Deals | Due diligence | Technology
The technology sector is witnessing a remarkable resurgence in deal-making as artificial intelligence and massive global demand for data drives activity. According to our 2025 Australia and New Zealand Deal Indicators report , while many sectors are grappling with declines, the tech industry has experienced a notable 43% growth in deal room volumes over the past year. This surge is particularly significant when compared to the overall market, where sectors like consumer staples and energy have seen falls of up to 50% in deal room activity.
This is in stark contrast to the communications services sector, which, despite a staggering 400% growth in the last three months, has shown a year-on-year decline of 6%. Such volatility highlights the unique position of technology as a driver of economic resilience in a challenging environment.
Technology’s growth reflects a broader shift in investment priorities, with private equity firms increasingly targeting technology assets. The appetite for tech deals is further fuelled by the ongoing digital transformation across industries, as businesses seek to enhance their operational efficiencies and customer engagement through innovative technologies.
By comparison, sectors like healthcare and financials are experiencing more subdued growth, with declines of 20% and 30% respectively in deal room activity over the past year. This divergence suggests that while traditional industries face headwinds from economic pressures, technology continues to thrive, driven by its critical role in modern business operations.
IPOs to turn around in 2026
In our 2025 Australia and New Zealand Deal Indicators report , the latest data on transaction types in the Australian and New Zealand markets reveals a complex landscape of deal-making activity, with significant disparities across various categories that are important for tech dealmakers to appreciate.
Notably, asset lifecycle management has plummeted by 92% in the last three months, yet it boasts a remarkable 300% growth over the past year. This indicates significant activity among private equity firms, good news for the tech deal outlook.
In contrast, buy-side deals have shown a more stable trajectory, with a 43% increase in the last quarter, although they remain down 7% year-on-year. Meanwhile, financing and refinancing transactions have gained momentum, reflecting a 20% growth in the latest quarter, suggesting that businesses are actively seeking to optimise their capital structures amid economic uncertainty.
However, traditional avenues such as IPOs and capital raises are struggling, with IPO activity stagnant and capital raises declining by 29% over the past year. This is expected to turn around substantially in 2026, with widespread anticipation the IPO market will be well and truly open for tech sector deals.
Private equity driving deals
In 2025, the standout transaction in the Aussie tech sector was the $16 billion acquisition of Airtrunk Operating by Blackstone and Partners , highlighting growing demand for data centre services.
The software sector also experienced substantial investments, exemplified by the $2.5 billion stake acquisition in digital design house Canva by a consortium led by Goldman Sachs Asset Management.
This shows strong investor interest in software platforms with significant growth potential. Additionally, CoStar Group’s $1.6 billion acquisition of Domain .
Holdings Australia illustrates a broader trend of investing in digital solutions and infrastructure to support innovation and market expansion in the technology sector.
In late 2025, logistics software WiseTech Global completed its acquisition of US-based logistics software-as- a-service specialist, E2open Parent Holdings, for A$2.1 billion, debt funded from a new syndicated debt facility.
Looking ahead, expect interesting combinations among firms of all sizes as tech continues to pique investor interest
