5 M&A Deals Which Exemplified Tech Sectors in 2024

Throughout this past year, as with every year, the expert analysts here at Hampleton Partners have monitored M&A developments throughout the tech industry, from Autotech to Digital Commerce, with our findings published in our sector-specific market reports.

Now, as we hurtle towards 2025, it’s an excellent moment to look back at just some of the megatrends discussed in our reports, and at the strategic acquisitions which exemplify their respective sectors. Let’s dive in.

As our Autotech report discusses, this is a sector that’s been undergoing radical changes on multiple fronts, from the great EV revolution (sales in top European markets increasing by 11% in Q2 2024 compared to Q2 2023), to the game-changing rise of Chinese OEMs, to the frenetic jockeying for position which is taking place within EV charging.

The latter subsector’s highly fragmented nature, with numerous startups racing to raise funds, boost their technological capabilities and stake their claims on an exploding market, is fuelling a major consolidation wave.

One example deal in 2024 was the acquisition of chargepoint operator Laddel by fellow Norwegian EV charging startup Wattif. This was a significant strategic step for Wattif, not just in terms of expanding its network, but also broadening its range of services thanks to Laddel’s fleet management technology which allows employers to reimburse employees who charge company cars at home.

Our new Artificial Intelligence market report reveals the hard data behind the big shouty AI headlines, showing for example that the number of M&A deals involving AI companies actually peaked back in 2021, well before generative AI had begun its inexorable rise in the public consciousness.

That surge was triggered by the implementation of AI tools in the business realm, with deal count starkly dropping in 2022 and remaining much lower than what we saw in 2021. That said, deal volume has been on the up, thanks to a strategic shift to higher value deals.

A case in point is Cisco’s $28.5 billion takeover of Splunk, a developer of software for monitoring and analysing machine-generated data. This was the biggest acquisition in Cisco’s history, with the tech giant stating that combining its networking portfolio with Splunk’s comprehensive data analytics prowess allows its customers to more effectively “harness the power of AI throughout their organisations and applications."

M&A dealmaking within the Enterprise Software sector remains robust, as shown in our most recent market report. The mass digitalisation that has taken place in the commercial sphere in recent years, with software solutions forming an indispensable part of daily workflows, has made this sector resilient in the face of headwinds.

Another factor is also galvanising activity here. Namely, the rollout of AI-powered enterprise solutions, such as tools for the swift and automatic data analysis. As our report notes, “even a cursory glance at notable deals struck in 2024 reveals how AI underpins many of the software platforms which have been drawing interest from acquirers.”

A prime example is a deal struck at the start of the year, when Zendesk – a leading developer of customer service solutions – announced its acquisition of Klaus, an AI-powered quality management platform. The technology created by Klaus automatically assesses customer interactions, providing actionable insights into how CX experiences can be improved. Folding this capability into its existing portfolio is part of Zendesk’s larger strategy of enhancing its workforce engagement prowess through AI. 

Anyone who’s read all of our reports will have noticed two factors respectively suppressing and propelling M&A activity across multiple sectors/subsectors. On the one hand, macroeconomic pressures have been instilling caution and therefore suppressing deal activity. On the other, the evolution of ever-more sophisticated AI-based tools is encouraging strategic acquisitions.

These conflicting factors are highlighted in our IT & Business Services report, which notes that inflationary and other macroeconomic and geopolitical challenges contributed to a drop in transactions in 1H2024, but that “enthusiasm around AI and an anticipated alleviation of change fatigue should spur more sales and restore momentum”.

Accenture, which takes first place in the report’s rundown of the most prolific acquirers in the IT & Business Services sector, is one of the companies actively expanding its AI capabilities via strategic takeovers. One such acquisition completed in 2024 is that of Ammagamma, whose AI-based technology allows clients to predict sales trends and optimise production strategies. The acquisition brought close to 100 AI experts, including software engineers and mathematicians, into the Accenture fold.

Digital Commerce is yet another sector which has seen M&A activity stimulated by the advent of AI. But our recent market report also notes the effect of other technology which is boosting e-commerce companies and helping drive acquirer interest.

For example, there are the multiple solutions being provided to e-commerce companies by Amazon (see the Amazon DSP marketing platform, which allows businesses to engage with customers on Twitch and Prime Video). Then there are the advances being made in digital twin technology, which is slowly but surely transforming the shopping experience.

One pivotal deal on the latter front is augmented reality company Infinite Reality’s blockbuster acquisition of Landvault. Infinite Reality achieved a $5.1 billion valuation this summer after a major investment round, meaning it was able to plough $450 million into the purchase of Landvault, which develops virtual 3D spaces and digital twins with countless use cases, including metaverse-based marketing and urban development planning.

As this brief tour of our recent reports emphasises, there is an immense appetite among buyers in all sectors for startups which are pushing the envelope. If you’d like to leverage Hampleton’s expertise to achieve an optimal M&A outcome for your business, don’t hesitate to say hello.