Jefferies banker flags major shift in tech M&A as AI deals replace software acquisitions

For years, software deals were the reliable backbone of technology M&A. Roughly half of all tech transactions involved software companies. That era appears to be winding down fast. Jason Greenberg, Global Head of Investment Banking Strategy and Executive Chairman of TMT at Jefferies, told Bloomberg’s Deals show on August 26 that a new wave of dealmaking is emerging in the technology sector. Software’s fall from grace According to Greenberg, software transactions previously accounted for approximately 50% of the tech deal landscape. Over the past year, that share has declined dramatically. The sector’s center of gravity has shifted toward AI capabilities and enterprise applications, leaving traditional software targets looking less attractive by comparison. Earlier phases of tech M&A were dominated by talent acquisitions. Foundational AI labs like OpenAI and Anthropic were at the center of acquisition interest, alongside hyperscalers such as Amazon and Microsoft that were racing to lock down competitive AI capabilities before their rivals could. What the next phase looks like Whether this next chapter centers primarily on AI infrastructure or on enterprise solutions that app...