Tech M&A in Latin America: 2026 Update
Tech M&A in the Latin America region saw a healthy rise in volume and value in 2025.There were 219 tech M&A deals in the region in 2025, a 25% increase over 2024. M&A disclosed deal value rose in 2025 to $2.3 billion, an increase over 2024’s total of $1.9 billion. That momentum is continuing in the first months of 2026, with a greater focus on higher-value deals.
That higher-value trend has even resulted in a Q1 2026 megadeal in the region, where GE Vernova, a spinoff from General Electric that focuses on decarbonization and electrification, acquired the remaining 50% stake in Prolec GE from Xignux for $5.275 billion. Prior to the deal, Prolec GE, which is a Mexican-based supplier for utility, renewable, and industrial projects, had operated as a 50/50 unconsolidated joint venture between GE Vernova and Xignux, a Mexican supplier of manufacturing and distribution of electrical conductors.
The GE Vernova deal is indicative of a growing consolidation movement across Latin America’s tech sectors that is driving M&A deals. Another factor underlying the move to larger deals is a rise in investor confidence in the region. According to a late-2025 survey by KPMG, 62% of global executives surveyed believe opportunity in Latin American M&A has never been greater. And 57% percent expect to increase their M&A activity in Latin America through 2026.
Targeted sectors
There are a number of sectors in the Latin America region that continue to be highly attractive tech M&A target areas.
Fintech
The fintech sector is seeing a growing emphasis on cross-border M&A deals in 2026. For example, Colombian fintech Tpaga recently acquired Spanish payment gateway MYMOID to enhance its card processing infrastructure and expand digital payment solutions across Colombia and Latin America.
Another recent example is Brazilian fintech Nubank's purchase of Hyperplane, a U.S.-based AI company, to strengthen its internal machine-learning stack used for underwriting, personalization, and fraud detection across Brazil, Mexico, and Colombia.
Most Latin American fintech deals in 2026 have been tuck-in acquisitions, where the buyer acquires a smaller, capability-driven company to gain something it needs such as technology, infrastructure, or talent, rather than pursuing large-scale consolidation.
Software development
The Latin American software development market is experiencing a significant surge in M&A deals in early 2026. Driving this activity is the rapid digitization occurring in countries such as Brazil, Mexico, Colombia, Chile, and Argentina. Another factor powering these deals is the need for specialized talent and technology, especially in areas such as AI and cloud. Companies are accelerating acquisitions in the region to secure skilled personnel and technologies to gain competitive advantage.
For example, Vesta Software Group, an operating group under Canadian buy-and- hold company Constellation Software, acquired Corum client Suplos, a Colombian software company that provides a cloud-based, AI-powered platform for digital procurement, supplier management, and strategic sourcing. The acquisition strengthens Vesta's ability to support digital transformation in the region by offering tools that improve efficiency, speed, and transparency in supply chain processes.
Another notable example is global programmatic media company MIQ's purchase of Brazilian digital advertising provider Adsmovil's Latin American operations. Adsmovil develops proprietary technology and software solutions focused on digital advertising, data segmentation, and mobile programmatic buying. The purchase combines Adsmovil's first-party data and mobile expertise with MiQ’s AI-powered technology, aiming to offer superior full-funnel marketing solutions.
The acquisition of Latin American software companies is expected to grow in 2026, driven by a surge in digital adoption, robust nearshoring trends, and a rebound in investment momentum.
AI
AI-enabled companies are being acquired at a high rate in Latin America. This is particularly true in fintech, where companies are using AI to solve problems such as fraud detection and credit scoring. For instance, Puerto Rico-based fintech company Evertec recently acquired Brazilian fintech platform provider Dimensa to bolster its portfolio in AI-powered credit analytics, core banking, and risk management.
AI is also a growing factor in tech M&A deals in the logistics sector. For example, global personal service company Accenture recently acquired Verum Partners, a Brazil-based infrastructure and capital projects management firm. The acquisition merges Verum’s deep field experience in logistics, mining, and transportation with Accenture’s AI and digital capabilities to strengthen Accenture's Infrastructure & Capital Projects capabilities in Latin America.
AI is expected to be a primary driver of tech M&A in Latin America going forward, with AI-focused software companies becoming highly attractive to buyers due to rapid digitalization across the region.
Leading Tech M&A Markets
The most active Latin American tech M&A markets in the first few months of 2026 are Brazil, Mexico, Chile, Columbia, and Argentina.
Brazil
Brazil saw the most tech M&A activity in the region in 2025, accounting for two thirds of the sellers and almost half of the buyers. That momentum has continued into the first months of 2026, driven by high demand in the country for digital services, data analytics, and automation. One recent example is French industrial group Legrand's acquisition Green4T, a Brazilian company that provides installation and maintenance services for data centers. The acquisition is part of Legrand's strategy to enhance its position in digital infrastructure and expand its footprint in the Latin American data center market, complementing its existing operations in Chile and Colombia
And in the data analytics space, V4 Company, a Brazilian digital marketing and growth consultancy, acquire AbLab, a Brazilian data analytics and data marketing firm. The deal strengthens V4's marketing services by integrating advanced data analytics and performance marketing capabilities into its existing ecosystem.
Mexico
Tech M&A activity has accelerated in Mexico in 2026 largely driven by companies aiming to secure nearshoring opportunities, enhance AI capabilities, and tap into a maturing fintech ecosystem. Global companies, particularly from the U.S., are migrating operations to Mexico to diversify supply chains and improve proximity. In addition, Mexico hosts one of Latin America’s largest fintech ecosystems, which is experiencing high consolidation as banks and large platforms acquire fintech startups to enhance their digital payment and lending capabilities.
Chile
Robust demand for digital transformation is driving increased tech M&A activity in Chile in 2026. Another factor is the need for automation in key industries such as mining and finance. In addition, the country continues to be a key player in SaaS and cybersecurity, attracting M&A deals in those areas. Last, regulatory reforms, which include faster approvals, are encouraging increased investment.
Colombia
U.S. and European buyers are increasingly acquiring Colombian tech firms to secure engineering talent as well as cost-efficient development teams, particularly in areas such as AI, software, fintech, and digital services. For instance Spanish tech company Hiberus recently purchased digital transformation solutions provider Telefónica Tech’s local operations in Colombia (as well as in Mexico and Chile) in large part to gain their highly specialized technical teams.
Argentina
Argentina is the second-most active country in Latin America in tech M&A activity in early 2026. Deals have been mostly in fintech, HR tech, proptech, and enterprise software. This activity is supported by better macro conditions in the country and stronger investor confidence.
Outlook for the rest of 2026
Tech M&A in Latin America is expected to grow in throughout 2026, driven by rapid digitalization, high demand for AI-related services, data centers, strategic consolidation, and a rebound in investor confidence resulting from improved political stability in the region.
In addition, increased cross-border activity from North American and European investors is strengthening, with software, fintech, and digital infrastructure projects expected to lead that growth.
The tech sectors in Latin America expected to be most attractive to buyers and investors in 2026 are heavily centered on AI adoption, digital infrastructure, and financial technology, with Brazil, Mexico, and Chile projected to lead tech M&A activity.