As we near the mid-point of 2025, merger and acquisition (M&A) activity across pharmaceutical, technology, and defense industries is roaring back. After a tepid post-pandemic recovery, a mix of economic stabilization, falling interest rates, and strategic urgency has created fertile ground for deal-making.
This article takes an in-depth, data-driven look at the biggest deals so far, who’s buying, who’s selling, and what political, economic, and social currents are shaping the global M&A environment.
Pharma: Buying Innovation as Patents Expire
In the biopharma world, the so-called “patent cliff” has returned with force. With over $200 billion in drug revenues at risk from expiring patents by 2030, large pharma companies are using M&A to shore up their pipelines.
Notable 2025 deals so far include:
- Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies to expand its neuroscience footprint.
- Eli Lilly’s $2.5 billion acquisition of Scorpion Therapeutics’ PI3Kα inhibitor program, focusing on precision oncology.
- GSK’s $1 billion acquisition of IDRx, bolstering its pipeline in chronic myeloid leukemia and other targeted therapies.
- AstraZeneca’s buyout of Belgian firm EsoBiotec (up to $1 billion), reinforcing its oncology focus.
- Merck & Co. acquisition of Harpoon Therapeutics (completed Q1 for ~$680 million) to deepen immuno-oncology capabilities.
Meanwhile, Novo Nordisk is extending its M&A strategy into adjacent therapeutic areas—its $354 million deal with Gensaic (gene therapy) reflects a long-term view of metabolic and cardiovascular leadership.
Medtech is also seeing targeted moves. Boston Scientific’s acquisition of Bolt Medical, and Hologic’s $350 million buy of Gynesonics, reflect a preference for smaller, tuck-in acquisitions that complement current portfolios.
Key drivers: Biopharma companies are flush with cash, pressured by innovation gaps, and under shareholder scrutiny to show R&D acceleration. Large players like Pfizer, Novartis, and Roche remain active hunters.
Technology: AI Arms Race Sparks Deal Frenzy
AI and cloud infrastructure are defining the tech M&A narrative in 2025. After two years of AI hype, firms now seek differentiated capabilities—either through vertical integration (owning hardware, chips, and data centers) or acquiring startups with critical intellectual property.
Key 2025 transactions include:
- OpenAI’s $6.5 billion acquisition of “io”, a consumer hardware startup founded by Jony Ive, signaling OpenAI’s ambition to enter Apple-like device ecosystems.
- Microsoft’s majority stake in Mistral AI (France) and continued investments in AI chip designers to reduce dependence on Nvidia.
- Google parent Alphabet’s acquisition of Replit, a cloud-based coding platform (deal value not disclosed), aimed at democratizing AI development tools.
- Nvidia’s acquisition of Run:ai (Israel-based AI orchestration startup) for ~$1.1 billion, supporting enterprise AI deployment.
Private equity has also re-entered the market. Thoma Bravo and Silver Lake are both circling cybersecurity and SaaS firms trading at post-IPO lows. Deal volume is up 30% year-over-year.
Key drivers: Falling interest rates, improving IPO markets, and fear of falling behind in AI competitiveness are pushing tech giants to accelerate dealmaking. Moreover, sovereign wealth funds (e.g., G42 in UAE) are underwriting large infrastructure alliances such as OpenAI’s $20 billion Stargate project in Abu Dhabi.
Defense: Security Needs Fueling Cross-Border Deals
Rising global tensions—from Ukraine and Taiwan to Red Sea disruptions—have boosted defense spending and triggered M&A across supply chains.
Recent high-impact deals include:
- RTX (formerly Raytheon Technologies) signing a $1.2 billion deal with Poland to co-manufacture Patriot air-defense systems—a strategic alliance that serves both business and geopolitical ends.
- Nippon Steel’s $15 billion acquisition of U.S. Steel, a landmark deal with clear national security implications. Despite early resistance, the deal is moving forward under strict U.S. conditions, including a “golden share” and American board majority.
- BAE Systems’ acquisition of Ball Aerospace (completed Q1, ~$5.5 billion) to bolster space and defense systems.
Other players like Lockheed Martin and General Dynamics are actively bidding on suppliers and cyber-defense firms to fortify their ecosystems. Additionally, Israeli defense firms (e.g., Rafael Advanced Defense Systems) are engaging in cross-border partnerships in Europe, capitalizing on NATO’s demand spike.
Key drivers: Governments are pushing for defense industrial capacity buildout, local production agreements, and tech innovation (e.g., hypersonics, AI-based targeting). Expect further vertical integration and regional joint ventures.
Final Thoughts: Who Will Be the Biggest Buyers?
Given current trends, here are the most likely aggressive buyers in each sector:
Pharma:
- Pfizer: After a quieter 2024, it is under pressure to replace revenue lost from COVID-19 products and post-patent blockbusters.
- Merck & Co.: Flush with cash and with Keytruda’s patent expiry looming (2028), expect more oncology-focused deals.
- Roche: Historically cautious but expected to move in neuroscience or diagnostics, areas where it faces rising competition.
Technology:
- Microsoft: With over $60 billion in cash and a strong AI ecosystem, it’s poised to buy smaller AI firms and infrastructure assets.
- Alphabet (Google): Its need to close the AI commercialization gap with OpenAI will push more acquisitions.
- Nvidia: Still in hyper-growth mode, with interest in software firms that can expand its dominance beyond GPUs.
Defense:
- RTX Corp.: Leveraging NATO relationships and technology leadership to expand its portfolio.
- BAE Systems: Particularly active in space, radar, and munitions.
- South Korea’s Hanwha Group: Emerging as a global consolidator, especially in land systems and munitions.
Conclusion: Cautious Optimism with Global Headwinds
M&A in 2025 is resurgent, but not without risk. Antitrust scrutiny—especially in the U.S. and EU—is intensifying. National security reviews are becoming more political. And while capital is available, investor expectations are unforgiving: synergies must be fast and visible.
Yet, for companies prepared to move decisively, the current environment offers rare opportunities. Whether through innovation, consolidation, or regional expansion, 2025 may be remembered as a transformational year for corporate strategy.