Logistics Technology M&A Update – December 2025

Logistics Technology M&A Faces Persistent Headwinds, AI Uplifts Long-Term Outlook

Capstone latest Logistics Technology Sector Update reports that sector growth in year-to-date (YTD) 2025 has been constrained by macroeconomic headwinds and persistent freight recession pressures. These pressures have squeezed logistics provider margins as freight demand and rates have remained subdued. This environment has continued to weigh on logistics technology spending activity and software upgrade demand since 2023. As a result, Logistics Technology sector merger and acquisition (M&A) activity has continued to slow throughout 2025. However, rapid technology development and the value proposition associated with automating otherwise time-consuming tasks has supported demand for logistics technology solutions to date. For example, efforts in agentic artificial intelligence (AI) solutions have not only created more efficient logistics operations but have also added to client and end-customer supply chain experiences. As a result, embracing digitalization and technology-enablement have been important differentiators in determining Logistics sector leadership and will likely support logistics technology M&A and sector growth for the foreseeable future.

While economic headwinds have subdued transaction activity to date, trade and supply chain volatility have highlighted the importance of technology-enabled resilience, visibility, and flexibility in logistics and supply chain operations. Logistics decision makers have sought technologies like global trade intelligence (GTI) solutions, freight visibility tools, and transportation management software (TMS) to help navigate this complexity. Ongoing advancements within logistics technology, namely AI integrations and agents, are expected to play an increasingly important role in Logistics industry leadership. Platforms investing in AI-enabled tools that boost operational agility, customer experience, and therefore profitability are anticipated to become market leaders in digitally underdeveloped sectors such as Freight Forwarding and Freight Brokerage. As a result, the importance of digitalization in determining Logistics sector leadership is expected to continue growing. Sector technology providers will likely accrue more value over time as logistics technology continues to gain momentum, scale, and become more integral in logistics and supply chain operations.

Logistics technology M&A activity has continued to face pressure from weakness in the broader Logistics ecosystem, with transaction volume falling 16.1% year-over-year (YOY) to 47 deals YTD. Tariff policy updates and rising inflationary pressures in YTD 2025 have reverted much of the late 2024 momentum from interest rate cuts and easing macroeconomic pressures that had acted as a boon to logistics technology M&A activity. These headwinds have seen private equity (PE) M&A activity stall as sponsors have attempted to wait for dealmaking conditions and logistics technology demand to improve. In contrast, public and private strategic M&A has remained stable as these buyers have continued to pursue targets that expand product offerings and capabilities. Falling interest rates and easing macroeconomic conditions are expected to encourage PE dealmaking through year-end and into 2026 as these buyers continue to selectively pursue acquisitions of targets with advanced next-generation capabilities like AI.

Also included in this report:

• An analysis of YTD 2025 Logistics Technology sector equity financing activity, including coverage on notable financing rounds.
• How recent advancements in AI have and will likely continue to support digital adoption, sector growth, and M&A consolidation across the Logistics Technology sector to date.
• A look into how AI-enabled solutions have driven operational efficiencies for select public logistics companies.

Capstone Partners’ Transportation & Logistics Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the Logistics Technology sector. Our team partners with leading mid-to-large sized business in the Logistics Technology space that serve growing end-markets. For more information on Logistics Technology M&A trends featured in this report or to speak with one of our Industrial Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.