M&A Insights Germany – August 2025 Issue
In this issue we reflect on the transaction and M&A environment in the first half of 2025. We supplement the review with a look back at a tense market environment and a summary of expectations for the second half of the year in the face of geopolitical uncertainties, new domestic political headwinds and the challenges of international trade policy.

Twice a year we report on the German transaction market and provide insights into the top deals that have shaped the market. We also comment on the sectors that have seen particularly high transaction activity and highlight future trends.
In this issue:
- M&A activity: The “fewer but bigger” trend continued into H1 2025, with deal value increasing by 40% and deal volume decreasing slightly. Investors remained selective amid economic uncertainty but pursued strategic large-scale acquisitions. Overall market sentiment remained uncertain.
- Top deals: Top deals in H1-25 include the sale of Dotmatics LLC to Siemens AG (€4.7bn), the sale of Apleona Group to Bain Capital and Mubadala Investment Company (€4.0bn), as well as the sale of Viridium Group to an investor group compromising BlackRock, T&D Holdings and Allianz (€3.5bn).
- Private equity: The total value of private equity deals rose by 10% year-over-year, even though the number of transactions declined by 6%. Technology remained the dominant sector, accounting for 44% of all deals.
- Industry segmentation: The deal landscape continued to be dominated by the technology sector, accounting for around 30% of deal volume. Targets with software and data-driven models remained highly attractive for both strategic and PE investors. The year-on-year increase in deal value of around 87% within industrials was fueled by several large transactions, while Germany’s historic defense and infrastructure fund has boosted the industrial sector’s appeal to domestic and international investors. Germany’s life sciences and healthcare sector rebounded in H1 2025, driven by strategic consolidation and cross-border expansion.
- Market environment in H1 2025: Despite stronger-than-expected growth, Germany’s economy remained under pressure from rising energy costs, labor shortages and political uncertainty. Geopolitical tensions and announced trade barriers with the US fragmented the M&A landscape.
- Outlook for H2 2025: Buy-and-build strategies and succession-driven deals are gaining traction, while distressed opportunities attract opportunistic investors. Deal structures are becoming more flexible to manage valuation gaps and risk. Geopolitical and regulatory uncertainty continue to shape deal appetite, with clarity on key policies enabling execution. Carve-outs remain a strategic tool to adapt portfolios to these risks.
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