Tech M&A Q1 report 2025
Deals and investments
Overview:
Q1 2025 kicked off with renewed energy in global tech M&A, despite persistent macro uncertainty. The quarter was defined by fewer transactions, larger valuations, and continued investor appetite for AI, cybersecurity, and infrastructure assets.
Amid rising interest rates and geopolitical noise, tech M&A trends point toward a more disciplined yet confident market—where quality assets command premium valuations, and local acquirers are stepping up, particularly in Latin America.
Global Tech M&A Activity
Global tech M&A rebounded sharply in Q1 2025, reaching 2,014 deals—a 21% YoY increase—with total deal value hitting $230 billion, the highest in over two years.
Mega-deals were a defining feature: Alphabet’s $32B acquisition of Wiz set the tone for a quarter led by strategic buyers targeting cloud security, AI infrastructure, and vertical SaaS.
Key trends:
- 70% growth in mega-deals, with 14 transactions above $1B
- Private equity re-emerged, accounting for 11 notable deals
- Valuation multiples held steady: 13.8x EV/EBITDA and 2.5x EV/Revenue, reflecting investor confidence in scalable, high-margin businesses
Software M&A also showed momentum, particularly in enterprise and cybersecurity verticals. Creative structuring (cash + stock) and high premiums (30.1%) indicated a willingness to pay for category leaders—despite economic caution.
LatAm M&A Overview:
In Latin America, tech M&A activity totalled 70 transactions, a 15% YoY increase, signaling a strong recovery from late 2024. Brazil remained dominant in volume, but Mexico, Chile, and Argentina showed signs of resurgence—especially in fintech, SaaS, and legaltech.
Notably, 65% of tech deals were led by regional buyers, pointing to a wave of intra-LatAm consolidation as local players pursue inorganic growth.
On the VC side, startups raised $1.18B in Q1, with early-stage deals showing resilience while late-stage funding contracted sharply.
Wrapping Up:
Q1 2025 marked a new chapter for tech M&A—characterized by selectivity, strong sector focus, and high-value bets. While public markets remain volatile and the IPO window stays shut, M&A continues to be the preferred route to liquidity and scale. In both global and regional markets, strategic acquirers are targeting defensible, AI-powered platforms—reshaping the tech landscape for the rest of 2025.
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