After three years of tightened capital, cost rationalization, and slower deal volumes, Brazil’s technology M&A market is showing strong signs of revival. Investors and entrepreneurs alike are reawakening to new opportunities, with deal activity beginning to climb from 2024’s trough. The resurgence is being led by confidence in the software ecosystem, renewed interest from global strategics, and improving valuation sentiment in 2025.
Resurgence After the Downturn
M&A activity across Brazil’s technology and tech-enabled services sectors has rebounded after a steep three-year decline. The data tells a compelling recovery story:
Software and IT Services M&A Activity Source: Pitchbook
Within this rebound, software continues to dominate deal activity. Software M&A accounted for the majority of tech transactions. In the first Ten months of 2025 alone, 40 software deals have already been announced, outpacing previous-year momentum.
By comparison, IT services posted sixteen transactions in 2024, and thirteen so far in 2025.
The trend underscores a clear narrative: buyers remain drawn to recurring-revenue software models, scalable architectures, and platforms that align with AI, SaaS, and automation trends, while IT services consolidation remains driven by acquisition of specific capabilities, efficiency gains and digital transformation roadmaps.
Private Equity vs Corporate Buyers: Corporate Back in the lead on the buyer side, corporate acquirers continue to steer Brazil’s tech M&A landscape. The share of transactions involving corporate buyers stands significantly higher than those led by private equity.
Source: Pitchbook
Corporates continue to use M&A as a critical tool to capture innovation, enter high-growth niches, and accelerate digital capabilities—particularly in ERP, cloud SaaS, and verticalized enterprise software. Meanwhile, private equity funds remain measured, pursuing selective platform and bolt-on opportunities.
PE-driven activity is expected to expand in late-2025 as interest rate expectations moderate and funds with expiring vintages seek new portfolio assets.
Landmark Transactions Highlight Strategic Renewed Interest
Select list of M&A deal activity (Control Deals) in Brazil (2025)
- Visma’s acquisition of Conta Azul, marking nearly R$ 2 bn in inbound strategic investment and a signal for renewed international appetite toward Brazil’s technology assets.
- Evertec acquiring 75% of Tecnobank for R$ 787 mn to expand fintech reach in Brazil’s vehicle financing segment
- Totvs completing its integration of Linx, reinforcing consolidation across ERP and retail tech.
These examples illustrate how both strategic buyers and financial investors are selectively re-entering the market, targeting well-governed companies with profitability, scalability, and clear differentiation.
Market Outlook – From Correction to Consolidation
Final Takeaway: A Market Reawakening: Stronger Companies, Sharper Investors, Smarter Deals
After a period defined by caution, the Brazilian tech M&A landscape is regaining its rhythm. Corporate strategics are leading the charge, private equity is showing growing selectivity, and software continues to anchor deal flow. If momentum continues through Q4, 2025 could set the stage for a stronger 2026—one where data-driven efficiency, disciplined valuations, and international buyer participation define Brazil’s next M&A cycle.
With over 25 years of experience advising IT and Technology Services firms on sell‑side and buy-side M&A and growth capital transactions, TH Global Capital offers data‑driven insights and strategic execution expertise across global technology markets.