KeyBanc Capital Markets analyst Jackson Ader identified three drivers that could accelerate technology‑sector mergers and acquisitions. First, the industry is moving from seat‑based licences to consumption‑based pricing, which Ader says is easier to negotiate privately, away from public markets.
Second, Ader points to durable growth prospects. Private‑equity firm Silver Lake has signalled willingness to invest in application‑software firms such as Workday, suggesting confidence in the sector’s longer‑term outlook despite a slower growth environment.
Third, valuation pressure is creating opportunities. A basket of application‑software stocks tracked by KeyBanc is down 26% since the start of 2025 after falling more than 50% in late June. Ader noted that an acquisition price that would have bought HubSpot for roughly $50 billion two years ago could now finance HubSpot and several peers.
Ader also warned that AI‑related infrastructure spending is diverting time, cash and attention from both public and private acquirers, potentially delaying deals. The analyst expects the pace of tech M&A, which lagged behind expectations in 2026, to pick up as pricing models evolve, growth confidence returns and valuations improve.
