The third quarter of 2025 is marked by a stabilized but still selective TMT M&A market in Europe. After a period of subdued activity in the first half of the year, transaction activity remains at a moderate level. Strategic buyers and financial investors are increasingly focusing on clearly defined growth areas – particularly those where digitalization, automation, and recurring revenue models promise long-term resilience.

One segment that is steadily gaining in importance is digital payment solutions. Driven by regulatory developments such as PSD2 and open banking, a dynamic ecosystem of established payment service providers, fintechs, and SaaS providers has developed in Europe. At the same time, the ongoing shortage of skilled workers is forcing many companies—especially SMEs—to digitize administrative financial processes, from B2B payment solutions to employee benefits platforms.

Private equity remains a key player in this area. Investors appreciate the stability of recurring revenues, the scalability of digital platform models, and the sector's comparatively low sensitivity to economic cycles. Despite higher interest rates, valuation multiples remain at elevated levels. 

In our Sektor Insight, we analyze key market segments—from payment infrastructure and corporate finance to cybersecurity—and highlight their strategic importance for German SMEs.

In the Deal Report, we look at Epassi's acquisition of Belonio, an example of cross-border platform strategies and increasing consolidation in the European payment ecosystem.

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