Quarterly Tech M&A Update | Q2 2025
M&A market developments and valuation environment in the second quarter
M&A activity in the tech sector picked up again in Q2 2025, showing a clear recovery after the moderate slowdown seen in the first quarter.
Following a muted start to the year, M&A activity in the technology sector rebounded strongly in Q2 2025. The number of deals in Europe increased by 8%, from 605 in Q1 to 651 in Q2. The German market also saw a notable uptick in transaction volume.
Strategic buyers continued to dominate the market, accounting for more than 90% of all deals — consistent with Q1 — reflecting their sustained long-term confidence in the sector. Cross-border activity remained stable at 53%, underlining the ongoing importance of international growth strategies for both strategic and financial investors.
The application software segment recorded 325 deals, followed by systems software with 48 — both recovering from Q1 declines. IT services remained steady with 228 transactions (Q1: 221), while the semiconductor segment rose from 13 to 20 deals. Overall, market sentiment improved significantly in Q2, with growing investor confidence heading into the second half of the year.
In our M&A update, we analyze the current valuation environment in the tech sector, focusing on the following key developments:
- European M&A activity, with background information on selected transactions
- Current valuation levels in Europe and Germany
- Trends across various subsegments in the tech stock market
We hope you find this report insightful and look forward to further discussions with you.
Your TMT team at Oaklins Germany
Managing Partner
View profile
Director
View profile
Senior Associate
View profile
Senior Associate
View profile
Senior Associate
View profile
Senior Associate
View profile
Senior Associate
View profile
Analyst
View profile