Quarterly Tech M&A Update | Q1 2026

M&A market developments and valuation environment in the first quarter 2026

Tech M&A activity in Europe and Germany declined, while strategic buyers and cross-border transactions continued to dominate the market.

In Q1 2026, transaction activity declined across Europe and Germany as geopolitical uncertainty, shifting trade and policy dynamics, and broader exogenous shocks weighed on market sentiment and delayed execution processes. A total of 432 transactions were recorded in Europe, down from 593 in Q4 2025, while Germany saw 119 deals compared with 153 in the previous quarter.

However, market conditions remained supportive for high-quality assets. Premium technology businesses with strong market positions, recurring revenues and clear strategic relevance continued to attract investor interest and achieve attractive valuation levels. This was particularly evident in competitive situations involving strategic buyers and international investors willing to pay for quality, scalability and access to attractive end markets.

Cross-border activity remained a defining feature of the market in Q1 2026, accounting for 54% of all European transactions and 59% in Germany. These figures show that international buyers continued to pursue technology targets despite a more cautious macroeconomic and political backdrop. Strategic investors also remained the dominant buyer group, representing 88% of transactions in Europe and 85% in Germany.

At the sub-sector level, application software and IT services remained the most active segments, while valuation trends across public tech peer groups developed unevenly. Our Tech M&A Update highlights current transaction activity, valuation developments and selected deals across the technology market in Europe and Germany.

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

Oaklins Quarterly Tech M&A Update Q1 2026.pdf Download PDF

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Jan P. Hatje Hamburg, Germany
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Christoph Rummelt Hamburg, Germany
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Felix Stehr Hamburg, Germany
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Florian Engel Hamburg, Germany
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Kevin Johannes Kambach Hamburg, Germany
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Felix Daetz Hamburg, Germany
Senior Associate
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Eddi Dudek Hamburg, Germany
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Sam-Louis Klein Frankfurt, Germany
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