Steady Deal Activity
The defining theme in industrial automation this quarter is the transition of artificial intelligence from pilots to production on the plant floor. After several years of experimentation, industrial AI is beginning to run live in demanding environments, in predictive maintenance, AI-enabled machine vision and inspection, edge intelligence, and increasing degrees of autonomy in robotics and material handling.
Highlights from the report:
- Industrial automation M&A held near its recent run rate of roughly 15 transactions per quarter in Q2 2026, consistent with the cadence over the past year, and full-year 2025 activity totaled 61 deals on our restated basis.
- Private equity and venture investment into the space moderated to 26 deals in Q2 2026 from 41 in Q1, mirroring the more selective sponsor posture seen across the broader market.
- Private middle-market industrial automation multiples firmed to about 7.3x TEV/EBITDA in 2026, up from roughly 6.7x in 2023, reflecting continued buyer appetite for quality assets.
- Broad industrials M&A slowed materially in Q2 2026. North American deal volume fell to about 690 transactions, down from roughly 885 in Q1.
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