The Most Acquired Categories: Tech vs CPG vs Pharma
Which industries see the most brand acquisitions? We compared technology, consumer goods, and pharmaceuticals to find out where the most M&A activity happens and why.
Where the Deals Happen
Not all industries acquire at the same rate or for the same reasons. Technology companies buy startups for their talent and intellectual property. Consumer goods companies buy brands for market share and shelf space. Pharmaceutical companies buy drug pipelines to replace expiring patents.
Each industry has its own M&A logic, deal sizes, success rates, and implications for consumers. This analysis compares the three most acquisition-heavy consumer-facing sectors: technology, consumer packaged goods (CPG), and pharmaceuticals.
The Numbers
Total M&A Activity (2020-2025)
| Metric | Technology | CPG/Consumer | Pharmaceutical |
|---|---|---|---|
| Total deal value | ~$1.5 trillion | ~$400 billion | ~$600 billion |
| Number of deals | ~15,000+ | ~3,000+ | ~2,500+ |
| Average deal size | ~$100M | ~$130M | ~$240M |
| Median deal size | ~$15M | ~$50M | ~$80M |
| Largest single deal | $69B (Microsoft/Activision) | $36B (Mars/Kellanova) | $63B (AbbVie/Allergan) |
| Most active acquirer | Alphabet (by count) | Nestle (by count) | Pfizer (by value) |
Technology leads in total deal count because the sector includes thousands of small startup acquisitions (acqui-hires) alongside mega-deals. Pharma has the highest average deal size because drug pipelines are expensive. CPG falls in the middle.
Technology: Buying Innovation
Why Tech Companies Acquire
1. Talent acquisition (acqui-hires). Many tech acquisitions are primarily about hiring engineering teams. The startup's product may be discontinued; the people are what matter.
2. Technology gaps. When a competitor develops a technology that threatens your market position, buying the company is faster than building the technology internally.
3. Market entry. Acquisitions provide instant entry into new markets. Amazon entered grocery through Whole Foods ($13.7B). Google entered hardware through acquisitions of Motorola (then sold) and Fitbit.
4. Competitive elimination. Buying a potential competitor removes a future threat. Facebook/Meta's acquisitions of Instagram ($1B) and WhatsApp ($19B) eliminated social media rivals.
The Tech Acquisition Pattern
| Phase | Activity |
|---|---|
| Startup (0-3 years) | Too small; not yet a target |
| Growth (3-7 years) | PE/VC funded; potential acqui-hire target |
| Scale (7-15 years) | Strategic acquisition target; $100M-$5B range |
| Maturity (15+ years) | Mega-deal target or acquirer itself |
Most Active Tech Acquirers (2020-2025)
| Company | Notable Acquisitions | Total Deals (Est.) |
|---|---|---|
| Alphabet/Google | Fitbit ($2.1B), Mandiant ($5.4B) | 30+ |
| Microsoft | Activision Blizzard ($69B), Nuance ($19.7B) | 20+ |
| Apple | DarwinAI, WaveOne, Mira, 20+ small AI companies | 25+ |
| Amazon | MGM ($8.5B), One Medical ($3.9B), iRobot ($1.7B, cancelled) | 15+ |
| Meta | Within (VR), various AI startups | 10+ |
Tech Acquisition Success Rate
Technology acquisitions have a mixed track record. Research suggests that approximately 70-90% of tech M&A fails to deliver expected value. However, the ones that succeed can be transformative:
Successes: YouTube (Google), Instagram (Meta), LinkedIn (Microsoft), Beats (Apple) Failures: Nokia (Microsoft, $7.2B write-off), Motorola Mobility (Google, sold at loss), Tumblr (Yahoo, sold for <$3M)
Consumer Packaged Goods: Buying Brands
Why CPG Companies Acquire
1. Brand portfolio gaps. CPG companies need brands in growing categories. If the natural deodorant segment is growing 15% per year, it is faster to buy Native than to build a competing brand from scratch.
2. Market share defense. When a competitor buys a brand, you lose market share. CPG acquisitions are partly defensive: buy brands before your competitor does.
3. Geographic expansion. Acquiring a brand with strong local presence in a new market is faster than building awareness from zero.
4. Premiumization. Acquiring premium brands allows CPG companies to move upmarket without diluting their mass-market brands.
The CPG Acquisition Pattern
| Phase | Activity |
|---|---|
| Indie launch (0-3 years) | Founder-driven growth, often D2C |
| Traction (3-5 years) | PE interest, Sephora/Ulta/Target placement |
| Scale ($50M+ rev) | Strategic CPG acquirer approaches |
| Acquisition | $100M-$5B deal, founder transition period |
| Integration | Distribution expansion, potential reformulation |
Most Active CPG Acquirers (2020-2025)
| Company | Notable Acquisitions | Strategy |
|---|---|---|
| Nestle | Vital Proteins, Blue Bottle (full), various divestitures | Reshape portfolio toward health/premium |
| Unilever | Paula's Choice (~$2B), Hourglass | Premiumize beauty/personal care |
| P&G | Few acquisitions; focused on organic growth + restructuring | Fewer, bigger brands strategy |
| Mars | Kellanova ($36B), Kind Snacks ($5B) | Expand snacking empire |
| L'Oreal | Aesop ($2.5B), Youth to the People | Dominate prestige beauty |
CPG Acquisition Success Rate
CPG acquisitions have a better success rate than tech (estimated 50-60% achieve objectives) because the assets are more tangible: established brands with known revenue, distribution, and consumer bases. However, failures still occur, particularly when acquirers aggressively cut costs (Kraft Heinz) or misunderstand the brand's appeal (Coca-Cola/Honest Tea).
Pharmaceuticals: Buying Pipelines
Why Pharma Companies Acquire
1. The patent cliff. When a blockbuster drug's patent expires, revenue can drop 80-90%. Acquisitions replace expiring revenue with new drug pipelines.
2. R&D failure rates. Only ~10% of drugs entering clinical trials reach FDA approval. Buying late-stage drug candidates is less risky than developing from scratch.
3. Therapeutic area entry. Acquiring a company with expertise in oncology, immunology, or rare diseases is faster than building a new division internally.
4. Scale economies. Larger pharma companies can commercialize drugs more efficiently through existing sales forces and distribution networks.
The Pharma Acquisition Pattern
| Phase | Activity |
|---|---|
| Biotech startup | Academic spin-off, VC-funded, pre-clinical |
| Clinical trials | Phase I-III data; valuation based on pipeline potential |
| Late-stage | Phase III success; acquisition target ($1-50B) |
| FDA approval | Commercialization; integration into acquirer's portfolio |
| Patent peak | Maximum revenue; acquirer seeking next pipeline |
| Patent cliff | Revenue collapses; cycle repeats |
Most Active Pharma Acquirers (2020-2025)
| Company | Notable Acquisitions | Driver |
|---|---|---|
| Pfizer | Seagen ($43B), Arena ($6.7B), Global Blood ($5.4B) | Post-COVID revenue cliff |
| AbbVie | Allergan ($63B), Cerevel ($8.7B) | Humira patent expiration |
| J&J | Intra-Cellular ($14.6B), Abiomed ($16.6B) | Stelara patent cliff |
| Bristol-Myers Squibb | Karuna ($14B), Myriad Genetics ($2.6B) | Eliquis/Opdivo cliffs |
| Merck | Prometheus ($10.8B), Acceleron ($11.5B) | Keytruda cliff (2028) |
Pharma Acquisition Success Rate
Pharmaceutical acquisitions have the most binary outcomes: a drug either works or it does not. If the acquired pipeline succeeds in clinical trials and gains FDA approval, the acquisition can be enormously valuable. If the pipeline fails, billions of dollars are lost. The overall success rate is estimated at 40-50%, with high variance.
Cross-Industry Comparison
What Consumers Notice
| Impact | Tech | CPG | Pharma |
|---|---|---|---|
| Product changes | Features absorbed into acquirer's products | Slow reformulation, distribution expansion | Minimal (drug is the drug) |
| Brand survival | Often discontinued | Usually maintained | Drug brand names persist |
| Price impact | Often free (ad-supported) | Gradual price increases | Patent-to-generic price collapse |
| Consumer choice | Platform lock-in | Illusion of choice (same parent) | Generic alternatives available |
| Visibility | High (tech press covers deals) | Low (most consumers unaware) | Very low (patients rarely know) |
Deal Motivations
| Motivation | Tech | CPG | Pharma |
|---|---|---|---|
| Talent | Primary | Secondary | Secondary |
| Technology/IP | Primary | Minor | Primary |
| Brand value | Sometimes | Primary | Minor |
| Revenue | Sometimes | Primary | Primary |
| Competitive defense | Major factor | Major factor | Minor |
| Pipeline/R&D | Sometimes | Minor | Primary |
Regulatory Scrutiny
Technology acquisitions face the most regulatory scrutiny in 2025-2026. The FTC and DOJ have challenged or closely examined deals by Apple, Google, Meta, Microsoft, and Amazon. The concern is that tech giants are acquiring potential competitors to maintain monopoly power.
CPG acquisitions receive moderate scrutiny, primarily when deals would create category monopolies (e.g., if P&G tried to buy Unilever).
Pharmaceutical acquisitions receive the least antitrust scrutiny because the drug market is large and fragmented. However, the FTC has begun examining "serial acquisitions" by pharma companies that accumulate market power across therapeutic categories.
The 2026 Outlook
Technology
- AI acquisitions will accelerate as companies race to build AI capabilities
- Regulatory challenges will continue, potentially blocking some mega-deals
- Netflix's hostile bid for WBD ($108.4B) could be the largest entertainment deal ever
CPG
- Continued indie brand acquisitions in beauty, natural foods, and wellness
- Portfolio reshaping (Kraft Heinz split, Unilever ice cream separation, P&G restructuring)
- Mars/Kellanova integration as the defining CPG deal of the year
Pharmaceutical
- Patent cliff-driven acquisitions will accelerate through 2028
- GLP-1 (weight loss) companies will be prime acquisition targets
- Biosimilar competition will reshape the biologics market
Frequently Asked Questions
Which industry has the most acquisitions?
By number of deals, technology leads with approximately 15,000+ deals from 2020-2025, most of them small. By total deal value, technology also leads at approximately $1.5 trillion.
Which acquisitions affect consumers most?
CPG acquisitions have the most direct consumer impact because they affect the products, prices, and availability of everyday items. Tech acquisitions affect digital products and platforms. Pharma acquisitions primarily affect drug availability and pricing.
Are acquisitions increasing or decreasing?
M&A activity across all three sectors increased significantly from 2020 to 2025, driven by low interest rates (2020-2022), corporate cash reserves, and strategic necessity (patent cliffs in pharma, AI race in tech, portfolio reshaping in CPG).
The Bottom Line
Technology, CPG, and pharmaceutical companies all acquire aggressively, but for fundamentally different reasons. Tech buys talent and technology. CPG buys brands and market share. Pharma buys drug pipelines to replace expiring patents. Understanding these different motivations helps consumers and investors make sense of the constant stream of acquisition headlines and their implications for the products, platforms, and medications we depend on daily.
Explore brand ownership across all categories on WhoBrands or browse companies.
Sources
1. PitchBook. "Global M&A Report." 2020-2025. 2. Bain & Company. "Global M&A Report." 2025. 3. McKinsey. "The State of M&A." 2025. 4. IQVIA. "Pharmaceutical M&A Trends." 2025. 5. Beauty Independent. "Beauty M&A Tracker." 2020-2025.
All brand ownership data verified through WhoBrands.com's research methodology. Last updated: February 11, 2026.
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Brands & Companies Mentioned
Xbox
Owned by Microsoft Corporation
Microsoft's video gaming brand encompassing consoles, games, and online gaming services, with FY2025 gaming revenue up 9% driven by Xbox content and services growth of 16%, Game Pass revenue nearing $5 billion, and Microsoft becoming the top publisher on PlayStation in Q4 FY2025.
Beats
Owned by Apple Inc.
Audio equipment brand specializing in headphones and speakers, owned by Apple Inc.
Microsoft Corporation
American multinational technology company developing, manufacturing, licensing, and supporting software, services, devices, and solutions worldwide.
10 brands in portfolio
Apple Inc.
American multinational technology corporation designing and selling consumer electronics, software, and digital services, headquartered in Cupertino, California.
15 brands in portfolio
Alphabet Inc.
American multinational technology conglomerate and parent company of Google, operating in internet services, cloud computing, AI research, and autonomous vehicles.
12 brands in portfolio