Tech M&A in the Asia-Pacific Region
Tech M&A in the Asia-Pacific (APAC) region has seen robust activity in the first nine months of 2025. Here are some of the trends driving this activity and where the major activity is happening in the region.
Key trends
Overall, tech M&A in the region is marked by trends such as digital transformation, emerging technologies such as AI, and investments in data centers.
Digital Transformation
Digital transformation is fueling tech M&A in the APAC region, driving companies to acquire or merge with tech firms to gain skills in technologies such as AI, cloud, and data analytics. This has led to a boom in dealmaking in the region in 2025. Some notable examples include:
- Japanese telecommunications company Nippon Telegraph and Telephone (NTT) took its subsidiary NTT Data, a digital service provider, private for $16.3 billion, in part to accelerate its growth strategy in AI and data center services.
- U.S.-based Vantage data centers acquired U.K.-based Yondr Group's Malaysian data center for$1.6 billion. The deal expands Vantage's presence in the high-growth Asia-Pacific market and supports customer demand for AI and cloud services.
- Israeli software solutions provider Sapiens International paid $22 million for Candela Labs, an Indian technology company that specializes in smart automation and digital solutions for the insurance industry. One of the primary reasons for the purchase was to gain Candela Labs' intelligent automation and digital solutions capabilities, which enhance Sapiens' data analytics offerings and overall product suite.
Digital transformation is particularly strong in Singapore, China, South Korea, Japan, and India, driven by robust government initiatives, high information and communication technology (ICT) development, and rapid AI and cloud adoption across key industries such as financial services and telecommunications.
Emerging technologies
The demand for leading-edge technologies such as AI is stimulating tech M&A deals across the APAC region. And the demand for AI, due to its massive computational and data storage requirements, is rapidly increasing the need for data centers. For instance, Chinese technology company HEC recently purchased the China datacenter services operations of Chindata Group from PE firm Bain Capital for $4 billion. The deal represents the largest M&A transaction in China's data center history.
Another example of an AI-related acquisition in the region was the $1 billion purchase of DX, a U.S.-based provider of an engineering intelligence platform, by Australian software company Atlassian. The purchase is designed to expand DX's platform and create an integrated "System of Work" that provides data-driven insights into developer productivity and experience, especially in the context of AI adoption.
Other technologies that are fueling M&A in the region include cybersecurity, fintech, cloud services, Internet of Things (IoT), and blockchain, as companies seek to modernize operations, expand digital capabilities, and capitalize on the region's rapid digital adoption. One example of this is Japanese electronics company, Mitsubishi Electric's, $1 billion acquisition of Nozomi Networks, a U.S.-based industrial cybersecurity company. The acquisition strengthens Mitsubishi Electric's operational technology (OT) and IoT security business by combining its industrial expertise with Nozomi's security technology.
Companies in India are particularly active participants in fintech related deals, where consolidation is taking place. Smaller fintech companies with high customer acquisition costs are merging with larger fintech companies that can more easily cross-sell and monetize their existing customer base. For example, Indian wealth management firm Fisdom was bought for $150 million by Groww, one of India's largest brokerage platform providers. Groww will leverage Fisdom's wealth management platform and technology to expand its offerings into the wealth management sector. For Fisdom, the acquisition gives it access to Groww's extensive customer base and technological infrastructure, allowing for wider distribution of its wealth management services.
Cross-Border Activity
The number of cross-border tech M&A deals involving companies in the APAC region is growing. Companies are actively pursuing tech M&A opportunities in the region, with many focused on deals in Asian countries such as China, India, and Singapore. For example, French IT company Capgemini acquired India-based company WNS, a provider of business process management services, in a $3.3 billion deal. The transaction aims to expand Capgemini's scale and capabilities in agentic AI and related business process services.
APAC-based companies are also increasingly looking to acquire Western technology and expertise. For instance, Softbank, an investment holding company based in Japan, acquired U.S.-based semiconductor design company Ampere Computing for $6.5 billion. The deal is aimed at advancing SoftBank's AI infrastructure capabilities and expanding its AI portfolio, leveraging Ampere's high-performance data-center processors.
In addition, Middle Eastern investors, especially Sovereign Wealth Funds, are showing significant interest in tech companies in the APAC region. In one example, Alat, an investment vehicle under Saudi Arabia's Public Investment Fund (PIF), announced a $2 billion collaboration with Hong Kong-based technology company Lenovo Group.
China, Japan, and India lead the way
Tech M&A activity in the APAC region is particularly high in China, driven by the Chinese government's strategic push for technological self-sufficiency; Japan, where governance reforms and favorable financing conditions have stimulated M&A deals; and India, where a young and tech-savvy population is a major catalyst for M&A deals.
China
The Chinese government actively encourages M&A to consolidate fragmented industries and reduce reliance on foreign technology, especially in key technologies such as AI and robotics. Chinese Companies are engaging in M&A, primarily domestically, to acquire AI capabilities, AI talent, and related infrastructure such as data centers. A recent example of this is the merger of Hygon Information Technology, a Chinese company specializing in research and development of high-performance processors for data centers and AI, and Dawning Information Industry, a Chinese company that researches, develops, and manufactures computer, storage, security, and data center products. The merger was a Chinese government-backed strategic move to consolidate China's domestic semiconductor and server supply chains to achieve technological self-reliance, particularly in AI.
In addition, the Chinese government has shifted its stance from regulatory crackdowns to a supportive approach that provides more flexible financing options for M&A deals. One example is a pilot program introduced this year that allows Chinese tech companies to use M&A loans for up to 80% of the total transaction value and extends the maximum loan term to 10 years, up from 60% and seven years, respectively.
Japan
Japanese governance reforms have led to a surge in M&A activity, with Japan's transaction volumes in the first half of 2025 reaching record highs. Government reforms have pushed companies to prioritize shareholder returns, leading to M&A deals. An example of this is PE firm KKR's acquisition of Japanese IT services company Fuji Soft, a deal that was driven by Fuji Soft's largest shareholder, 3D Investment Partners, which pushed for a privatization to boost corporate value.
Japanese governance reforms and initiatives have also pushed companies to improve capital efficiency, leading them to offload underperforming subsidiaries or divisions. For instance, Japanese chemical company Mitsubishi Chemical Group sold its underperforming pharmaceutical subsidiary, Mitsubishi Tanabe Pharma Corporation, to PE firm Bain Capital for $3.3 billion. The divestiture allows Mitsubishi Chemical to focus on its core chemicals business, reduce debt, and improve shareholder returns.
India
India's young and tech-savvy population is a major catalyst for tech M&A deals. That demographic represents a large, digitally-native consumer market that attracts investment and drives the need for technology acquisition. Buyers both international and in India are increasingly acquiring companies to gain critically needed expertise in technologies such as AI, data analytics, cybersecurity, and cloud computing. For example, TalentSprint, an Indian provider of online education programs focused on generative AI, machine learning, and business analytics, was acquired for $1.5 billion by multinationaI professional services company Accenture. And in India, AI-powered data analytics company Straive acquired complementary company SG Analytics to add its expertise in data analytics and AI operationalization in sectors such as banking, financial services, insurance, media and telecom.
In addition, Indian technology startups, which represent a large and skilled talent pool, are attracting significant attention from buyers as a way to pick up technology expertise. For instance, U.S.-based networking solutions company Netgear acquired Indian cybersecurity startup Exium, a company with expertise in developing and deploying networking and security solutions at scale, particularly in the Secure Access Services Edge (SASE) space.
Strong growth in Australia and New Zealand
Australia and New Zealand have also seen particularly strong growth in tech M&A activity over the past few years, with deal volume projected to set a new record in 2025.
As is the case with other countries in the region, digital transformation is driving a lot of tech M&A activity in Australia and New Zealand. Companies are prioritizing acquisitions in high-growth areas such as AI, cloud computing, data analytics, and cybersecurity. For example, Accenture paid $650 million for Australian cybersecurity company CyberCX, in a deal intended to bolster Accenture's cybersecurity services in the APAC region and leverage CyberCX's strong government and C-suite relationships.
Also, Australian PE firm Pacific Equity Partners (PEP) paid $288 million to acquire a 75% stake in New Zealand-based telecommunication company Spark's data center business. The deal reflects the growing demand for data center infrastructure driven by AI and cloud computing.
The PEP deal also reflects the attractiveness of the technology, media, and telecommunications (TMT) sector in Australia and New Zealand, which has accounted for more than 15% of deal value in those countries since 2022. A recent example of this in Australia is telecommunications company Vocus Group's $3.5 billion acquisition of TPG Telecom's Enterprise, Government, and Wholesale fiber network assets. The deal integrates TPG's metropolitan fiber footprint with Vocus's existing network, creating a more competitive digital infrastructure provider in Australia.
The future
Tech M&A in the APAC region is expected to grow over time, driven by digital transformation, particularly in AI, strong demand for data centers and digital infrastructure, and by innovation in this highly dynamic geography. There is also a trend toward larger, domestic acquisitions of high-growth companies, driven by the need to unlock the potential of transformative technologies such as generative AI.
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