Setting the Scene: Iberia’s Tech M&A Momentum
Despite a softer global economic outlook, the region is showing clear signs of resilience and strategic evolution. Here’s a quick look at the key trends, market context, and what buyers are really looking for in 2025.
Sector Trends: What’s Driving M&A?
- Deal Volume and International Interest:Tech deal activity continues to grow, with international investors still playing a significant role – particularly in high-value transactions – despite their share moderating from 56% in 2023 to 51% in 2024 and YTD 2025. In Portugal, for example, cross-border deals accounted for 98% of total deal value, even though they represented only 73% of the volume, highlighting the strong influence of global capital.
- Valuations: Chasing the PremiumValuations remain strong across IT services and software, particularly in high-growth niches like B2B SaaS, cybersecurity, AI, and digital transformation. While the median EV/EBITDA multiple for European mid-market tech services peaked at 12.9x in 2024, premium assets with double-digit growth and margins are commanding well above 20x – sometimes reaching 30x in hot segments like cybersecurity
- Private Equity and Corporate Activity:Private equity and strategic buyers are more active than ever, with PE accounting for 55% of all tech deals in 2024 – up from 45% in 2023. Roll-up activity in the mid-market also gained momentum, rising from 25% to 38% year-over-year, pushing overall dealmaking to its highest level in four years. In Portugal, PE funds continued to play a leading role in both domestic and cross-border M&A and are expected to drive much of the market in 2025. With attractive valuations across certain segments, private equity is also capitalizing on opportunities for take-privates and leading market consolidation efforts.
Market Pulse for 2025: Cautious Start, Optimistic Outlook
In the first half of 2025, Iberia recorded around 130 tech and tech services M&A transactions, following 395 in 2024 and 368 in 2023. While the activity has been slower so far – mirroring global trends – expectations are high for a strong rebound in the second half, fuelled by macroeconomic tailwinds. Spain’s GDP is forecast to grow by 2.5% and Portugal’s by 1.8%, both outpacing much of the eurozone and supporting continued investment appetite.
What’s Driving Buyer Decisions in 2025?
Looking Ahead: Strategic Partnerships and Value Creation
As the market shifts from volume to value, strategic fit, operational excellence, and sustainable growth are taking center stage. Sellers who understand these evolving buyer priorities are best positioned to unlocking premium valuations.
At TH Global Capital, we help Iberian tech and services companies connect with leading global investors and strategic partners. Our international network and cross-border expertise -demonstrated in transactions such as Decskill’s sale to Astek and Axis Corporate’s integration with Accenture – ensures our clients are well-positioned to seize opportunities in this dynamic market. If you’d like to discuss trends, valuation drivers, or how to best position your business for strategic M&A, let’s connect.
Sources:
From 56% in 2023 to 51% in 2024 and YTD 2025. In Portugal, – Source : Pitchbook
PE accounting for 55% of all tech deals in 2024 – up from 45% in 2023. Roll-up activity in the mid-market also gained momentum, rising from 25% to 38% year-over-year – Source: Pitchbook
Around 130 tech and tech services M&A transactions, following 395 in 2024 and 368 in 2023. Source: Pitchbook