# Defense Buyers Pursue Technology Acquisitions

DC Advisory counted 112 U.S. defense and government-sector transactions in the first half of 2026, up 15% from the same period in 2025, although second-quarter activity declined to 43 deals. Buyers are favoring differentiated, mission-critical defense technology tied to well-funded requirements—including AI, autonomy, cyber, space, and unmanned systems—while labor- and consulting-heavy services firms face a subdued market amid changing government buying patterns.

- Defense contractors and acquisition teams can use the transaction trend to assess where buyers see durable demand: capabilities connected to well-funded mission requirements.
- Companies pursuing investment or acquisition strategies should note the stronger interest in differentiated technology and the weaker market for traditional labor- and consulting-heavy services.
- Procurement professionals may find the shift relevant when assessing suppliers and market capacity across AI, autonomy, cyber, space, and unmanned systems.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Artificial Intelligence, Cybersecurity
**Published:** October 19, 2026

### Sources
- [Defense tech M&A runs hot as government services firms work past the DOGE effect - Washington Technology](https://www.washingtontechnology.com/companies/2026/10/defense-tech-m-runs-hot-government-services-firms-work-past-doge-effect/416680) - Washington Technology