Agentic AI acquisition roundup: Backbase acquires Kasisto

§ 01 Executive Snapshot

• What: Backbase acquires Kasisto as part of a shifting AI acquisition market.
• Who: Backbase and Kasisto, with insights from PwC.
• Why it matters: The acquisition reflects a broader trend in the AI space, where high-quality, AI-native targets are becoming scarce, impacting M&A strategies.

§ 02 Key Developments

• Global deal value in the AI acquisition market is projected to reach $4 trillion by 2026, indicating significant growth potential in this sector.
• In 2025, one-third of analyzed deals by PwC included AI as a component of their M&A strategy, showcasing the initial surge in AI interest.
• By the first half of 2026, the proportion of AI-related deals has dropped to 17%, suggesting a shift in acquisition focus or a scarcity of suitable AI-native targets.

§ 03 Strategic Context

• The AI acquisition landscape is evolving as companies seek mature technologies rather than prototypes, reflecting a maturation in the market.
• The decreasing percentage of AI-related deals signals potential challenges for acquirers in finding viable AI-native companies, which could affect future M&A activities.

§ 04 Strategic Implications

• The immediate consequence of this trend may lead to increased competition among acquirers for fewer quality AI targets, potentially driving up valuations.
• Long-term, the scarcity of suitable acquisition targets may push firms to invest more heavily in developing their own AI capabilities internally rather than relying on external acquisitions.

§ 05 Risks & Constraints

• A potential risk includes regulatory scrutiny over large-scale acquisitions in the AI sector, which may impact deal closures or lead to increased compliance costs.
• The competition for high-quality AI targets could result in overvaluation, leading to financial strain for acquirers if expected synergies do not materialize.

§ 06 Watchlist / Forward Signals

• Upcoming milestones include the release of further M&A reports from PwC and other analysts, which could clarify ongoing trends in the AI acquisition space.
• The success or failure of Backbase’s acquisition of Kasisto will serve as a key indicator of the effectiveness of such deals in enhancing competitive positioning in the AI market.