Data and AI account close to 60% of active acquisition requirements for Indian technology companies, as buyers prioritise proprietary intellectual property over cost-efficient delivery
ALL INDIA — Global technology acquirers and private equity buyers from North America and Europe are rapidly shifting their cross-border M&A strategy in India, prioritizing proprietary intellectual property, artificial intelligence, and data analytics over traditional cost-efficient IT services.
According to buy-side network data from technology-focused M&A advisory firm TermSheet Capital, Data and AI account for nearly 60 per cent (56%) of all active acquisition requirements targeting Indian technology companies, while cybersecurity and other technology segments make up the remaining 44 per cent.
This reflects a broader shift in global technology dealmaking, as companies seek to acquire capabilities in AI, data analytics, and automation rather than build them entirely in-house. Buyers are increasingly looking for proprietary technology, specialized talent, and established products that can accelerate development, strengthen existing businesses, and improve their competitive position. Overall, 43 per cent of the over 150 North American and European buyers in TermSheet Capital’s network are actively seeking Indian targets, with 15.7 per cent specifically targeting product companies over services firms.
“The shift is from acquiring cost-efficient delivery capabilities to acquiring technology that strengthens a buyer’s competitive position. Indian businesses with proprietary IP, deep domain expertise and capabilities that complement an acquirer’s existing business are increasingly well positioned to attract strategic interest,” said Amol Rathi, Founder and Chief Executive Officer of TermSheet Capital.
For founders considering an exit, this means greater scrutiny of intellectual property ownership, customer relationships, delivery capabilities, and strategic relevance alongside financial performance.
“A successful transaction is not just about finding a buyer or achieving the right valuation. It is about identifying the acquirer for whom the business has the greatest strategic relevance and structuring a deal that creates value for both sides,” Rathi said.
TermSheet Capital is expanding its buy-side team to identify Indian businesses matching acquisition priorities across North America, Europe, and the Middle East.
About TermSheet Capital:
Headquartered in Pune, TermSheet Capital specializes in technology-led mergers and acquisitions (M&A) and cross-border transactions, advising sellers on buyer identification, valuation, deal structuring, and transaction execution.
