Acquisitions

Canva is strategically acquiring animation software Cavalry and AI video creation startup MangoAI to enhance its offerings and compete with Adobe. These moves aim to bolster motion graphics and AI-powered video generation, integrating Cavalry into Canva’s core platform and MangoAI into its enterprise ad tool. This follows strong revenue growth for Canva, which is also focusing on leveraging AI while acknowledging the continued need for human oversight in creative work.

Palo Alto Networks exceeded Q2 earnings and revenue expectations, yet its stock dipped due to conservative third-quarter earnings guidance. The company announced plans to acquire Koi, enhancing its AI security capabilities. Despite strong revenue growth and strategic acquisitions, including CyberArk, the stock’s performance reflects investor concerns about future projections amidst market competition.

Cloud software stocks are declining in 2026, with companies like Salesforce and Adobe down significantly. This sell-off is fueled by fears that AI agents will disrupt enterprise software by automating tasks. Mid-sized companies are exploring financing and potential acquisitions by private equity. While some see buying opportunities, “seat-based” application providers are considered vulnerable. Companies are rushing to integrate AI, but investor confidence remains shaky, suggesting a wave of acquisitions and strategic shifts are likely.

OpenAI has hired Albert Lee, a former Google executive, to lead its corporate development. Lee, who previously managed strategic growth at Google Cloud and DeepMind, brings extensive experience in high-profile acquisitions. This move signals OpenAI’s aggressive strategy to secure market dominance in the competitive AI landscape through strategic investments and M&A, following a period of rapid growth and several recent acquisitions of AI startups.

Salesforce’s stock rose 5% on Friday, extending a 13% gain over five days after the company posted Q3 adjusted earnings of $3.25 per share (vs. $2.86 estimate) and revenue of $10.26 billion, just below forecasts. CEO Marc Benioff emphasized AI as a growth driver, highlighted acquisitions of Regrello and Waii, and pointed to the Agentforce platform, whose ARR jumped 330% to $540 million. Analysts are optimistic about Salesforce’s AI‑enhanced roadmap, cost discipline, and potential to lead the cloud‑software sector.

Ceva, Inc. (NASDAQ: CEVA) announced a public offering of 3,000,000 shares of common stock at $19.50 per share, expecting to close on November 20, 2025. J.P. Morgan and UBS Investment Bank are managing the offering, which includes an option for underwriters to purchase an additional 450,000 shares. Gross proceeds are expected to be $58.5 million, intended for acquisitions, investments, working capital, and share repurchases. The offering is under a shelf registration statement filed with the SEC. Ceva’s focus is on wireless connectivity, sensing, and edge AI technologies.

Rocket Lab (RKLB) shares rose after Q3 results revealed record revenue of $155M, a 48% YoY increase, driven by launch contracts and space tech. Loss per share was better than expected. Q4 revenue guidance of $170M-$180M exceeded estimates. The company boasts a record backlog of 49 launches and is pursuing acquisitions for defense initiatives. Shares surged over 31% last month and have more than doubled YTD. Rocket Lab acquired Geost and opened a new Neutron launch site. Adjusted EBITDA loss in Q3 was $26.3M, with Q4 losses projected between $23M-$29M.

DoorDash shares plummeted 17% after announcing significant investments in autonomous delivery, a new tech stack, and acquisitions like SevenRooms and Deliveroo. While revenue beat expectations, earnings fell short, and Q4 adjusted EBITDA guidance was below consensus. Investors are wary of the aggressive spending impacting near-term profitability, despite CEO Tony Xu’s confidence in long-term growth. Analysts acknowledge the operational strength and potential long-term investor support, but caution that patience and consistent disclosure are needed.

AI investments and acquisitions are increasingly followed by layoffs in the tech industry. Companies like Accenture, Meta, and HP, after investing in or acquiring AI startups like Snorkel AI, Scale AI, Windsurf and Humane, subsequently reduced workforce. This trend reflects a shift from prioritizing startup culture to rapidly optimizing for ROI and eliminating overlapping roles. While AI advancements may create new jobs, the immediate impact involves workforce restructuring, potentially impacting talent attraction and demanding greater employee protections related to acquisitions. The industry is aggressively recruiting in core AI roles despite overall reductions.

AAR CORP. (NYSE: AIR) announced the pricing of a public offering of 3,000,000 shares of common stock at $83.00 per share. Underwriters have an option to purchase up to 450,000 additional shares. Net proceeds, estimated at $239 million (potentially $274.9 million with the option), will primarily repay debt under its revolving credit facility and for general corporate purposes, including potential acquisitions. Goldman Sachs, Jefferies, and RBC Capital Markets are the joint lead book-running managers. The offering is expected to close around October 2, 2025.