TermSheet Capital Highlights Surge in Global Acquisitions of Indian AI and Proprietary IP Firms

Global technology acquirers and private equity investors from North America and Europe are rapidly refocusing their cross-border mergers and acquisitions (M&A) strategies in India. The emphasis is shifting from traditional cost-efficient IT services to proprietary intellectual property (IP), artificial intelligence (AI), and data analytics capabilities.

According to buy-side network data from TermSheet Capital, a technology-focused M&A advisory firm, AI and data analytics now constitute approximately 56% of all active acquisition requirements targeting Indian technology companies. The remaining 44% of acquisition interest is spread across cybersecurity and other technology segments.

This trend reflects a broader global movement in technology dealmaking, where companies prefer acquiring established AI, data analytics, and automation capabilities rather than developing them internally. Buyers seek proprietary technology, specialized talent, and mature products that can accelerate innovation, enhance existing operations, and improve competitive positioning.

TermSheet Capital’s data indicates that 43% of over 150 North American and European buyers in its network are actively pursuing Indian acquisition targets. Notably, 15.7% of these buyers specifically focus on product companies instead of service providers.

Amol Rathi, Founder and CEO of TermSheet Capital, explained, “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.”

For Indian founders contemplating an exit, this evolving landscape means that intellectual property ownership, customer relationships, delivery capabilities, and strategic relevance are scrutinized alongside financial performance during due diligence.

Rathi emphasized, “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.”

In response to rising demand, TermSheet Capital is expanding its buy-side team to better identify Indian companies that align with acquisition priorities across North America, Europe, and the Middle East.