Australia leads global deal growth in tech & marketing sectors

Australia is now leading deal growth in the marketing, technology, and consultancy sectors, outpacing both the United States and Europe. New data shows deal volumes in these fields rose by 3% across Asia-Pacific region - led by Australia in the past year, even as global activity fell and key western markets reported sharp declines.

Deal volumes

Figures from SI Global detail significant disparities in merger and acquisition activity. While global deal volumes dropped 8%, Europe experienced an 18% fall and the United States saw a 5% decrease. Meanwhile, Australia's positive growth signals a change in the country's profile among international investors and acquirers.

Australia's ascent has been attributed to its rapid adoption of artificial intelligence, expanding data infrastructure, and reputation for commercial creativity. These trends have made the market attractive to private equity buyers and technology-focused investors looking for scalable, future-proof assets.

"Australia has moved beyond being just 'interesting' to investors and it's now a core market. Buyers are targeting firms with tech-enabled models, AI capability and creative edge - and Australia is delivering on that brief," said Julia Vargiu, Director, Australia, SI Global.

Private equity focus

Private equity is playing an increasingly prominent role. While these firms remain a minority among all active buyers, they now account for 80% of the clients selling through SI Global. Many founders and owners are choosing private equity or PE-backed groups for the greater alignment these deal structures provide. The report names Merchantwise, an Australian agency backed by private equity, as an example of the trend.

New standards have emerged, with operationalised AI and machine learning now seen as essential requirements. Buyers are paying close attention to the integration and practical application of AI in target companies.

"AI readiness is now the price of entry. Half of the buyers we surveyed now include artificial intelligence and machine learning in their M&A strategy. They expect more than a buzzword - they want to see how it's operationalised and future-proofed," said Michael Chin, Director, SI Global.

Marcomms rebound

The marketing and communications sector is also experiencing a resurgence. The buyer share for marcomms groups rose by 22%, driven by consolidation activity among global firms like Publicis, Stagwell, and Hakuhodo, all investing in capabilities linked to artificial intelligence. Technology consultancies remain highly active, with Accenture responsible for 15% of all tech consultancy acquisitions globally.

Due diligence shifts

Private equity interest has raised the bar for due diligence, with buyers executing what SI Global has called "deep tissue" reviews. Investors are diving deeper into operational details and management teams, reflecting the increased complexity and scrutiny in today's market.

Despite challenges in completing deals, the number of active acquirers has increased by 4%. High-quality private companies, especially in tech and marketing, are still able to command strong multiples, even as listed company values dip amid tougher economic conditions.

Management focus

The report highlights the challenge of finding companies with strong leadership and reliable revenues. These factors are emerging as central criteria for successful acquisitions, underscoring the importance of capable management against an uncertain economic backdrop.

"Australia is no longer on the fringe, it's in the frame. With more buyers in market than ever before, founders who combine strong leadership with clear capability are in a powerful position to attract serious interest," said Vargiu.