M&A Trends in European Tech: Slower in 2024, Heat Up Expected
In 2024, the M&A scene in Europe was a bit quieter than expected, according to new data from PitchBook. There were 858 exits of VC-backed companies in Europe, which was down 11% from the previous year and a significant 37% drop from the flurry of activity in 2021. However, there was a silver lining in the form of an increase in deal value, thanks in large part to Puig’s $2.8 billion public listing on the Spanish stock exchange.
Overall, M&A deal value reached €61.8 billion in 2024, up from €42.2 billion in 2023. Nalin Patel, an analyst at PitchBook, noted that it was a quiet year for European VC-backed exits, especially in terms of listings, as companies seemed to be holding off. However, Patel predicts that we can expect to see more exits in 2025 as market conditions improve.
Some notable deals in Europe in 2024 included Merck’s $1.3 billion acquisition of London-based biotech EyeBio and Italian unicorn Bending Spoons’ $700 million acquisition of Dutch file transfer service startup WeTransfer. Bending Spoons also acquired the assets of event tech startup Hopin last year.
Looking ahead to 2025, Julian Riedlbauer, a partner at investment bank Drake Star, is optimistic. He believes that we’ve “reached the bottom” in terms of dealmaking activity and expects valuations to be higher this year compared to last year. Riedlbauer sees a bright future for startups in sectors like AI, mission-critical enterprise software, and defense tech to raise money or explore opportunities for acquisition.
However, not everyone shares Riedlbauer’s enthusiasm. Patel from PitchBook points out that the exit markets are still challenging, with larger corporates potentially facing their own growth constraints and cost pressures. Despite differing opinions, one thing is clear – the M&A landscape in Europe is evolving, and 2025 is shaping up to be an interesting year for startups and investors alike.
