Startup Trends: 5 strategic acquisitions during M&A uptick of Q3
The Q4 Forge Investment Outlook highlights a significant uptick in M&A activity during the third quarter of 2025, marking 51 closed transactions involving private companies listed on Forge’s marketplace — the highest quarterly total since Forge began tracking private company acquisitions in 2019. In addition to the completed deals, the report identified 10 announced acquisitions expected to close before year-end, reflecting sustained momentum in private-market consolidation.
Among these anticipated transactions, five target companies carried valuations of $800 million or more at the time of announcement. Their acquirers span key sectors including HR management, artificial intelligence, and enterprise data software — industries at the forefront of digital transformation.
These five acquirers could be worth watching by investors as they progress towards completion and innovate their product offerings.
Paradox AI to be acquired by Workday for an undisclosed amount
Scottsdale, Arizona-based Paradox AI, a conversational-AI recruitment platform, has agreed to be acquired by Workday, an enterprise HR management system. The deal was announced in August and closed on October 1, 2025.1 Neither company disclosed the financial details for the merger.
Based in Pleasanton, California, Workday anticipates Paradox’s AI agent will sit alongside its HR and talent solutions and enable its clients to achieve more efficient processes.2
Founded in 2016, Paradox AI’s price per share was $13.47 as of its last funding round in December of 2021, putting its post-money valuation at $1.6 billion. Its investors include Willoughby Capital, Brighten Park Capital, Workday Ventures and Sapphire.
Guideline to be acquired by Gusto for $600 million
Another August announcement was the acquisition of Burlingame, California-based Guideline by payroll and HR management platform Gusto. Guideline is a startup that offers its enterprise clients retirement plans and 401K management.3
San Francisco-based Gusto anticipates the acquisition will allow it to complete its all-in-one HR-related suite of products, which will now include a retirement plan option. It was reported that the deal will close for $600 million.4
Founded in 2012, Gusto’s Forge Price™ is $15.50 as of October 23, 2025, implying a valuation of $4.94 billion. The private company’s notable investors include T. Rowe Price, Fidelity, Y Combinator and General Catalyst.
Acquiree Guideline’s Forge Price™ is $14.89 as of October 23, 2025, implying a valuation of $753 million.
Statsig to be acquired by OpenAI for $1.1 billion
In September, San Francisco-based OpenAI announced an agreement to purchase Statsig, a product-experiment and analytics platform. A leading AI research company, acquirer OpenAI will use the merger to strengthen its own applications suite and provide for responsive experiences for its clients.5
Founded in 2021 and headquartered in Bellevue, Washington, Statsig was reportedly purchased for $1.1 billion. If the deal closes, Statsig’s CEO and founder, Vijaye Raji, will join OpenAI as its CTO of applications.6
Founded in 2015, OpenAI’s Forge Price™ is $723.12 as of October 23, 2025, implying a valuation of $500 billion. It has been widely reported as the world’s most valuable private company and is part of Forge’s Private Magnificent 7.7 Its investors include Sequoia Capital, Andreessen Horowitz, Thrive and K2 Global.
Statsig’s latest price per share is $5.54 as of its last funding round in May of 2025, putting its post-money valuation at $1.08 billion.
Tecton to be acquired by Databricks for an undisclosed amount
In August, data solutions heavyweight Databricks announced its plans to acquire Tecton, a feature platform that helps businesses scale engineering processes and AI efforts. San Francisco-based Databricks anticipates the merger will empower its clients to better deploy and scale AI agents within its analytics and cloud management solutions.8 The financial details of the acquisition have not been disclosed.
The news of the pending merger came in the same month that Databricks announced its Series K funding round, raising $1.13 billion and putting the private company’s post-money valuation at $100 billion.9
Databricks’ Forge Price™ is $180.61 as of October 23, 2025, implying a valuation of $120.41 billion. Its investors include Ark Venture Fund, Franklin Templeton, Andreessen Horowitz and Microsoft. Databricks is a Forge Private Magnificent 7 company.
Tecton’s price per share was $36.56 as of its last funding round in July of 2022.
Superhuman to be acquired by Grammarly for an undisclosed amount
San Francisco-based Superhuman, a developer of email extensions to improve team communications, announced in July it was going to be acquired by Grammarly.10 Also headquartered in San Francisco, Grammarly is a private technology company that offers writing assistance tools and software to individuals and businesses. The financial details of the deal were not disclosed.
Grammarly’s announcement of the merger indicated it will use Superhuman’s AI-enabled communications solutions to enhance its own email-related suite of products, which already helps revise over 50 million emails per week.11
Founded in 2009, Grammarly’s price per share is $12.55 as of its last funding round in July of 2025, putting its post-money valuation at $7.13 billion. Its investors include BlackRock, Breyer Capital, Founders Circle Capital and Institutional Venture Partners.
Superhuman’s price per share is $27.21 as of its funding round in August of 2021, which put its post-money valuation at $802 million.
$1.08B
$802.06MM
$1.15B
