Quarterly Tech M&A Update | Q3 2025

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

The technology M&A market remained robust in the third quarter of 2025 – particularly in Germany, where transaction activity significantly outperformed the European average.

The technology M&A market remained resilient in Q3 2025, with Germany once again outperforming the European average in terms of deal activity and investor sentiment.

Across Europe, 663 technology transactions were recorded, reflecting a 2% increase compared to Q2. Germany strengthened its position as a core driver of market activity with 160 deals – a 19% rise quarter-on-quarter – highlighting sustained investor confidence and renewed momentum in the domestic market.

Strategic investors continued to dominate the landscape, accounting for more than 92% of all transactions. Cross-border activity reached 57%, underscoring the growing internationalization of growth strategies and the ongoing search for technological capabilities and market access.

Within the technology sector, application software (329 transactions) and IT services (249 transactions) remained the strongest contributors to overall deal volume. System software and semiconductor transactions remained stable at moderate levels.

Valuations continued to trend upward, nearing cycle highs in the public peer group segment. Key drivers included the Federal Reserve’s first rate cut of 2025, robust – in some cases upgraded – earnings expectations and sustained demand for AI-related technologies.

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

• The development of M&A activity across Europe and Germany

• Current valuation levels and trends within key subsectors

• Selected transactions, including Orange Cyberdefense’s acquisition of Ensec AG

We hope you find this report insightful and look forward to further discussions with you.

Quarterly Tech M&A Update Q3 2025.pdf Download PDF

Your TMT team at Oaklins Germany

Jan P. Hatje Hamburg, Germany
Managing Partner
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Christoph Rummelt Hamburg, Germany
Director
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Felix Daetz Hamburg, Germany
Senior Associate
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Florian Engel Hamburg, Germany
Senior Associate
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Lukas Girke Frankfurt, Germany
Senior Associate
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Kevin Johannes Kambach Hamburg, Germany
Senior Associate
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Felix Stehr Hamburg, Germany
Senior Associate
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Sam-Louis Klein Frankfurt, Germany
Analyst
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