Germany's tech M&A boom hits €16 billion as investors bet big on software
Germany’s tech sector saw a surge in merger and acquisition (M&A) activity in 2025, with total deal values climbing by 28 percent. The combined worth of transactions reached €16 billion, even as the overall number of deals dipped slightly. Investors focused more on established players, reshaping the landscape for startups and scale-ups alike. The year’s biggest deals included Rumble’s €1.9 billion purchase of Northern Data and Proofpoint’s €1.6 billion acquisition of Hornetsecurity. These high-profile transactions highlighted the dominance of software firms, which made up 61 percent of all tech takeovers in Germany.
Foreign buyers played a major role, accounting for over half of all acquisitions. Strategic investors—rather than financial firms—drove more than 80 percent of the transactions, signalling a shift toward long-term growth over short-term gains. Funding trends also shifted in 2025. The top 100 startups secured a combined €35.5 billion, with defense-tech firm Helsing alone raising €596 million. While the number of deals fell from 387 in 2024 to 375, the average funding per round rose to €11.6 million, reflecting a more selective but higher-stakes investment climate.
The data reveals a maturing German tech market, where larger deals and strategic investments took centre stage. With software leading the way and foreign buyers driving activity, the sector’s focus on established companies looks set to continue.
