Australia’s M&A trends 2026 in TMT

Global TMT deal values bounced back in 2025 even though the number of deals stayed roughly the same, with tech companies leading the charge. In Australia, buyers are still interested, but they're much more focused on price and deal structure. Announced deals dropped to around 1,285 in 2025, with TMT making up about 253 of those - roughly one in five. Disclosed TMT value came in at around US$6.8bn, lower than the previous year. The drop reflects fewer mega-deals getting done rather than a lack of interested buyers.

1) AI infrastructure is attracting “platform” capital

Big tech companies are zeroing in on the infrastructure that powers AI growth - data centres, networks, and energy. To fund these massive investments, they're turning to joint ventures, minority stakes, and infrastructure partnerships alongside traditional M&A. It's not just about the sheer capital required. There's also growing uncertainty about where sustainable returns will come from in the AI value chain. Recent analysis shows a concerning gap: infrastructure investment is racing ahead while revenue generation lags. This is pushing investors toward assets that can handle heavy capital expenditure and deliver steady, contracted cash flows.

In Australia and New Zealand, we expect continued focus on data centres (especially AI-ready facilities), fibre networks, edge computing, and large-scale network assets that have clear room to grow and long-term infrastructure appeal. Investors want resilient bets as AI economics continue to evolve.

2) Buyers are prioritising capability over category

Transformation is back on the agenda. CEOs are open to buying, selling, and partnering - even outside their core business. In TMT, convergence is driving the action: software companies are chasing distribution, infrastructure investors are buying operating know-how, telcos are expanding into enterprise and platforms, and media companies are going after tech and data capabilities.

3) Portfolio reshaping will drive both buy and sell side opportunities

Telcos keep splitting off infrastructure - towers, fibre, data centres - from their retail operations. This lets them go asset-light and build partnerships while freeing up capital to invest in AI-era priorities. Meanwhile, in tech and IT services, deals are shifting toward 'orchestration' plays: companies are stitching together cloud, data, and AI into complete platforms through consolidation and targeted capability acquisitions.

• Digital infrastructure plays: Expect more deals around data centres, fibre, and edge computing, with creative financing structures to handle the heavy capex.
• IT services and managed platforms: Companies will acquire capabilities that speed up their AI offerings and bring in industry expertise.
• Cross-border interest: Australia stays a top target, while New Zealand is becoming the logical next step for ANZ expansion strategies.
• More creative deal structures: Think staged buyouts, minority stakes with options for control down the line, and partnerships that reduce risk in the early years.

2026 won't be a simple return to boom times. But the direction is clear: money is flowing into infrastructure and platforms, while companies are buying capabilities to fast-track their AI adoption. If you're thinking about a TMT carve-out, building a platform, or acquiring capabilities in ANZ, now's the time to get ready, before the market really heats up.