Following a first quarter marked by geopolitical uncertainty, the TMT M&A environment remains challenging in the second quarter of 2025. Although the situation on the capital markets has stabilized slightly after the abrupt slump in April, transaction activity remains subdued. In Europe in particular, we are seeing many companies and investors continuing to adopt a wait-and-see attitude. At the mid-year point, global TMT M&A volume remains well below the previous year's level, especially in the mid-market segment. However, private equity remains active, particularly where structural growth drivers are intact and buy-and-build strategies can be implemented.

One segment that is particularly in focus is cybersecurity. Against the backdrop of increasing threats, the topic is becoming increasingly relevant: a recent TÜV study shows that over 50% of German companies were victims of a cyberattack last year. At the same time, the market is highly fragmented and offers attractive consolidation opportunities, especially for financial investors and large industrial players. In the sector insight, we therefore analyze the market structure, transaction dynamics, and valuation landscape of European cybersecurity providers.

In the deal report, we also look at the acquisition of German email security provider Hornetsecurity by US group Proofpoint. The transaction underscores the strong international interest in European specialists with a focused SaaS business model and documents the attractiveness of the segment even in an M&A market characterized by uncertainty.

Our SektorReports are available in German language. If you have further questions regarding this topic, feel free to get in touch.