KPMG Technology Deal Flash – Edition Q3/2025

Each quarter we aim to keep you up to date with a concise review of the M&A and fundraising activity in the Technology Sector in GSA, together with a look at capital markets activity, valuation levels and a deep dive into relevant sector issues with insights from our KPMG experts.

In this issue:

• Mergers & Acquisitions: Tech M&A in the GSA region surged in Q3 2025, driven by stronger investor sentiment and AI demand. Switzerland led with 50% growth, Germany rose 30%, while Austria declined 36%, resulting in an overall 25% regional increase in deal activity.
• Funding Activity: Funding activity slowed in Q3 2025, with GSA deal volume down 15% to €1.1bn as both early- and late-stage rounds declined. Investors targeted proven startups, with Business & Productivity and Financial Software driving 70% of deals. Q4 expectations remain cautiously optimistic.
• Share Performance: European technology equities faced pressure in Q3 2025, weighed down by supply chain disruptions and margin compression from US tariffs on electronics and semiconductors. A modest late-quarter recovery emerged, supported by improving macroeconomic conditions and easing market sentiment, though overall performance remained subdued.
• KPMG Insights: KPMG’s Digital Excellence in the Manufacturing Industry report showcases manufacturing’s strong digital maturity and AI ROI. Based on a global survey of 2,450 leaders, including 368 industrial manufacturing executives, it examines challenges and strategies for fully leveraging digital transformation opportunities.