Deal Fever Is Back: Big Tech, Private Equity, and Industrials Light the M&A Fuse Into Year-End

One of the defining tailwinds for equities as 2025 winds down has been a revival in M&A activity, and this morning’s cluster of deal announcements reinforces the idea that corporate confidence—and private capital—remains alive and well despite a noisy macro backdrop. While deal volume is likely to slow over the final few trading days of the year for practical reasons, the signal from recent transactions is already doing its work: valuations are being supported by proof that strategic buyers and sponsors are willing to write large checks at meaningful premiums.

The most market-moving development today comes from Alphabet (GOOGL), whose involvement in energy infrastructure has helped ignite a sharp rally across alternative energy names. The solar space, in particular, is responding aggressively, with the Invesco Solar ETF (TAN) up more than 4% as investors extrapolate renewed capital flows into power generation tied directly to data center demand. Alphabet’s acquisition of Intersect's data center and generation pipeline underscores a critical theme for 2026 and beyond: AI-driven power demand is now an M&A catalyst, not just a CapEx talking point. The deal accelerates the deployment of generation capacity, aligns power supply directly with Google’s data center footprint, and highlights how hyperscalers are increasingly willing to vertically integrate energy solutions to secure reliability and speed. The market is reading this as a validation moment for renewable developers and grid-adjacent assets, which explains the broad-based strength across solar, power infrastructure, and clean energy equities.

Away from tech and energy, the most dramatic headline belongs to Cintas (CTAS) and UniFirst (UNF). Cintas has taken its $275-per-share all-cash bid public , effectively escalating what now looks like a hostile campaign by exploiting UniFirst’s internal governance turmoil. The 64% premium is eye-catching, but the fact that UNF continues to trade well below the offer highlights lingering skepticism around regulatory approval and the Croatti family’s ironclad control via Class B shares. Strategically, the rationale is clear: combining CTAS and UNF would create unrivaled route density and operational efficiency in the uniform rental space. However, this is also precisely why the market is discounting the outcome—FTC scrutiny looms large, even with a hefty $350 million reverse termination fee meant to signal confidence. Regardless of the end result, the episode reinforces that strategic buyers are willing to be aggressive, even in politically sensitive consolidation plays.

The industrial and aerospace complex also delivered meaningful M&A signals. Howmet Aerospace (HWM) announced a $1.8 billion all-cash acquisition of Consolidated Aerospace Manufacturing from Stanley Black & Decker (SWK), a deal that checks several investor-friendly boxes. The transaction comes with favorable tax treatment, an attractive implied EBITDA multiple near 13x after synergies, and immediate exposure to long-cycle aerospace demand. It’s a reminder that high-quality industrial assets continue to command premium valuations, especially those tied to aerospace, defense, and supply-chain resilience.

Meanwhile, Honeywell (HON) isn’t doing M&A per se, but it is actively reshaping itself in a way that supports valuation. By settling long-running Flexjet litigation with a one-time $470 million charge and reclassifying its Advanced Materials unit as discontinued operations following the SOLS spinoff, Honeywell is “clearing the decks.” The company reaffirmed strong Q4 organic growth and margins, and investors are increasingly focused on the planned 2026 aerospace spinoff as the real value-unlocking catalyst. In the context of today’s deal-heavy tape, HON’s moves fit neatly into the broader theme of portfolio simplification and strategic clarity, which often precedes transaction activity.

Media and software round out the M&A picture. Warner Bros. Discovery (WBD) remains in play after Paramount Skydance amended its $30-per-share all-cash offer, significantly strengthening the financing backstop with an irrevocable personal guarantee from Larry Ellison. The raised regulatory termination fee and improved interim flexibility are designed to remove lingering objections and keep pressure on WBD’s board. Separately, Clearwater Analytics (CWAN) agreed to an $8.4 billion take-private deal led by Permira and Warburg Pincus, delivering a 47% premium and reinforcing that private equity remains highly selective—but very active—when it sees durable cash flows and defensible software franchises.

The common thread across all of these announcements is confidence. Strategic buyers are leaning in, sponsors are still willing to deploy capital, and boards are increasingly open to transactions that unlock value or resolve complexity. Even if the calendar naturally quiets over the next few sessions, the message has already landed. M&A is not just a year-end curiosity—it has become a structural tailwind for equity valuations, supporting multiples and sentiment as markets look ahead to 2026.