The Telecom, Media & Technology sector led all M&A activity in EMEA in 2024, with total deal value reaching €194.5 billion, an 11.9% increase year-on-year according to data provided by Datasite. This surge was primarily driven by two key themes: the growing role of AI in strategic acquisitions and the increasing investment in digital infrastructure as businesses look to scale up their technology capabilities.

As artificial intelligence adoption accelerates across industries, companies are increasingly acquiring AI-powered SaaS and automation providers to stay competitive. AI has become a key driver of M&A, particularly in enterprise software, cybersecurity, and business intelligence. Private equity firms and tech giants alike are actively buying AI-focused companies to enhance their product offerings, reduce operational inefficiencies, and future-proof their businesses.

Cloud computing, data centres, and telecoms infrastructure continue to attract significant M&A interest, as companies look to expand their digital capabilities and meet increasing demand for high-performance computing. The European Commission is also playing a role, with the upcoming Digital Networks Act (DNA) set to incentivise further investment in telecoms infrastructure.

Private equity firms have been particularly active in this space, acquiring data centre operators and cloud service providers to capitalise on the growing need for scalable computing power. Notably, Apollo’s €10.1 billion acquisition of a 49% stake in Intel’s Fab 34 chip manufacturing facility in Ireland highlights the increasing investor focus on Europe’s semiconductor and cloud infrastructure market.

As AI capabilities continue to evolve and demand for high-speed digital infrastructure increases, M&A activity in the tech sector is expected to remain strong. Companies that position themselves as leaders in AI integration and digital transformation will remain prime acquisition targets for both strategic buyers and private equity firms.