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KPMG Technology Deal Flash – Edition Q2/2025

M&A, Funding, Valuation of technology companies in the current quarter

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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. At the same time, we look at capital market activity, valuation levels and deep dive into relevant sector issues with insights from our KPMG experts.
In this issue:

  • Mergers & acquisitions:Tech M&A activity in the GSA region declined in Q2 of 2025, with the number of deals decreasing by 18% quarter-on-quarter due to shifting trade policies and geopolitical uncertainties. However, despite the decline in deal count, total deal value increased, indicating a shift towards higher-value transactions. 
  • Funding activity:In Q2 of 2025, VC deal activity in the GSA region continued to decline, with deal value falling by 7% and volume dropping by 2% compared to the previous quarter. This decline was driven by lower valuations, cautious fundraising, oversaturation of sectors, and weaker exit prospects.
  •  Share performance: European equities continued their upward trajectory in Q2 2025, with the STOXX Europe 600 index rising by 1.4% quarter-over-quarter, driven by optimism surrounding a potential EU–US trade deal. The technology sector exceeded expectations with the STOXX Europe 600 Technology index gaining 7.5%, supported by favorable regulatory conditions and increased investment in digital infrastructure and AI innovation.
  • KPMG insights:As generative AI advances, firms face pressure to deliver tangible returns and accelerate adoption. Tech leaders must lead transformation by embedding AI across operations to drive agility, efficiency and productivity. KPMG’s ‘Tech intelligence’ outlines a strategic roadmap that highlights these shifts and stresses the importance of aligning AI with business goals to overcome challenges and unlock value for digital transformation.

The KPMG Technology Deal Flash is published quarterly and highlights current M&A and financing activities in the technology sector in the GSA region. Subscribe to our newsletter to make sure you never miss an issue.