M&A Update Technology Sector | Q1 2024

M&A market developments and valuation environment in the first quarter

European M&A activity increases significantly in Q1 2024 compared to the previous two quarters. Valuations in all subsectors also show a positive development.

M&A activity in the European tech market continued to significantly increase in Q1 2024. The trend towards domestic transactions in Europe and Germany is levelling off in 2024. Currently, around 46% of transactions are domestic and over 90% are carried out by strategic buyers. The number of European transactions has increased from 429 in Q4 2023 to 652 in Q1 2024.

Challenging macroeconomic factors, such as interest rate levels, continue to slow down the current market environment.

In our M&A update, we analyze the current valuation environment of the tech sector, focusing on the following developments in particular:

- The European M&A activity as well as background information on selected transactions

- The current valuation level in Europe and Germany

- Various sub-segments in the Tech stock market

Additionally, we showcase one of our recent tech deals in Germany: the sale of Cara Care, a digital health app combining both mental and nutritional therapy options, to Mahana Therapeutics, the leading company for digital therapeutics for chronic diseases.

We hope you enjoy reading the report and look forward to exchanging ideas with you soon.