The TMT M&A environment in the first quarter of 2025 was heavily influenced by geopolitical uncertainties and macroeconomic turbulence. In particular, the new US tariffs imposed by President Trump at the beginning of April triggered considerable uncertainty in the global capital markets and led to one of the worst stock market declines since the COVID-19 pandemic. As a result, the global TMT M&A volume recorded its weakest start to the year in over ten years. The increased volatility caused many companies to postpone or cancel planned IPOs and M&A transactions.

Despite these short-term challenges, the TMT sector remains structurally attractive: digitalization, AI development and cloud infrastructure continue to generate fundamental demand. Against this backdrop, investors are increasingly looking at the cash flow profile again and valuation sensitivity is increasing, especially against the backdrop of a generally significantly lower valuation level. Our analysis in the Sector Insight provides interesting insights into which companies represent attractive investment profiles in the current market environment.

Building on this, we shed light on KKR's strategic investment in the IT service provider DATAGROUP in the Deal Report. This transaction represents a milestone in the German IT services sector and consolidates DATAGROUP's growth path.

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