In 2025, Japanese companies executed 65 cross-border M&A transactions in the information and communications technology (ICT) sector across the Asia–Pacific region—the largest volume among all industries. Activity spanned IT services, cloud, AI, digital content, e‑commerce, retail digitalisation, and other technology‑driven business models. Across Southeast Asia, China, Korea, and Taiwan, companies accelerated strategic initiatives to capture expanding digital demand while reshaping business portfolios in response to intensified competition and rapid technological shifts.
The year highlighted the dual nature of Japanese outbound ICT investment: selective collaboration and scale‑up in high‑growth ASEAN markets, and targeted withdrawal or restructuring in mature or highly competitive markets such as Korea and China. Combined, these dynamics signaled an industry undergoing structural redesign as digital transformation becomes embedded in every sector.
Singapore: Coexistence of Collaboration and Shareholder Exit in Digital Services
Singapore continued to operate as a regional hub for digital platforms, enterprise technology, and SaaS models. Japanese corporates pursued collaborative partnerships and minority investments in IT services and data‑platform companies, while certain existing shareholders advanced exit strategies. INCJ divested its stake in UMITRON, an AI‑driven ocean‑data company, transferring ownership to management to support a locally‑led expansion phase. This transaction, alongside multiple deals in digital marketing and B2B SaaS, confirmed Singapore’s role as the anchor location for digital‑industry scale‑ups across APAC.
Indonesia: Momentum in Content, Advertising, and Social‑Media‑Driven Digital Demand
Indonesia saw continued investment driven by the growth of digital consumption and online media. Vector invested in bythen, an IP‑content company, to strengthen capabilities in social‑media marketing and digital content production. Indonesia’s ecosystem—comprising e‑commerce, live‑commerce, and social‑media advertising—has expanded rapidly, making it a priority market for Japanese companies seeking exposure to consumer‑oriented digital‑service categories. The interplay of content and advertising monetisation remained a defining feature of Indonesian ICT‑related M&A in 2025.
South Korea: Strategic Withdrawals Amid Intensifying EC and App‑Market Competition
Korea saw notable examples of selective withdrawal driven by intense local competition. CROOZ divested its EC‑related subsidiary, CROOZ SHOPLIST, transferring ownership to a Korean company. Korea’s mobile‑app and e‑commerce sectors are dominated by powerful local incumbents, making profitability challenging for foreign digital operators. This environment encouraged Japanese corporates to rationalise portfolios and redeploy resources toward more favourable markets.
Vietnam: Expansion of IT Services and Offshore Development Collaboration
Vietnam recorded increased activity in IT services and system‑development collaboration. TIS formed a capital and business alliance with NTQ, an IT service provider, strengthening its APAC‑oriented solution capabilities while expanding offshore‑development capacity. Vietnam’s engineering resources and scalability have made it a core partner market for Japanese corporates building regional delivery centres. Vertical SaaS collaboration—for retail, food service, and hospitality—also gained traction, reflecting broad‑based demand for digital transformation across industries.
Taiwan: Increased Investment in Retail and Food‑Service SaaS Platforms
Taiwan experienced continued investment in SaaS solutions aimed at improving operational efficiency in retail, food service, and other real‑economy industries. QUALICA, part of the TIS INTEC Group, invested in WiXtar, a provider of solutions for the food‑service industry. The transaction reinforced the broader regional trend where Japanese companies seek to integrate retail and restaurant DX into APAC strategies, capitalising on rising demand for workflow optimisation, inventory visibility, and multi‑location management tools.
Notable Transactions（2025）
- INCJ → UMITRON (Singapore): Divested shares in the AI and ocean‑data company to shift governance and expansion momentum toward a local leadership model.
- Vector (Indonesia): Invested in bythen, strengthening exposure to high‑growth IP content and SNS‑marketing markets.
- TIS (Vietnam): Formed a capital and business alliance with NTQ to combine offshore‑development capacity with APAC SaaS expansion.
Structural Insights from 2025: Key Themes Shaping APAC ICT M&A
Four structural themes defined Japanese corporate behaviour in the ICT sector.
First, SaaS and IT services have become the core axis of “Japan × ASEAN” collaboration. Singapore provides access to regional markets, Vietnam provides development capacity, and Indonesia provides a large consumer economy—together forming a recurring strategic combination.
Second, the convergence of content, advertising, and social media strengthened as a high‑growth investment cluster. Markets with integrated EC and SNS‑advertising ecosystems attracted disproportionate attention.
Third, strategic withdrawal or selective downsizing emerged as a rational choice in China and Korea, where local competitive intensity and cost structures make sustained profitability difficult.
Fourth, ICT increasingly represents the “upstream layer” of digital transformation across industries. Manufacturing, logistics, retail, food service, and public sectors have all expanded digital initiatives, raising overall demand for IT services and SaaS across APAC.
Insight for 2026: DX Themes to Watch Across APAC ICT Markets
Looking ahead to 2026, several digital‑transformation domains are poised to accelerate, building on foundations established in 2025.
Generative AI is expected to move from experimentation to real operational deployment across sales, customer interaction, software development, and quality management. SaaS models combined with offshore development are likely to expand, as Vietnamese engineering resources integrate more closely with Japanese and regional SaaS providers. Retail DX and OMO models will advance, driven by rising demand for multi‑channel inventory optimisation, CRM integration, payment platforms, and retail‑media solutions. Logistics DX will deepen through warehouse automation, transportation visualisation, and digitised cross‑border EC logistics. Cybersecurity and data‑governance requirements will intensify, influenced by diverse regulatory frameworks across APAC. Vertical SaaS for food service, hospitality, and service industries will see continued growth as workflow digitalisation spreads. Finally, Green Digital—spanning renewable‑energy forecasting, EMS, and energy‑efficiency cloud solutions—will gain importance as environmental data becomes central to energy‑transition strategies.
Collectively, these trends indicate that ICT will remain the most important cross‑industry enabler of transformation in APAC throughout 2026.
Related Links
[Full Report] APAC Cross-Border M&A Review 2025–2026: The Definitive Edition (All Sectors & Regions)