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KPMG Technology Deal Flash – Edition Q4/2025

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, 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 slightly declined in Q4 2025, with deal volume decreasing by 5% quarter-on-quarter due to cautious investor sentiment amid concerns about tariffs, inflationary pressures, geopolitical uncertainties, and persistent valuation gaps. Deal flow remained stable in Switzerland with 27 transactions, while transaction volume declined by 7 and 2 transactions in Germany and Austria, respectively.
  • Funding Activity: Funding activity saw a continued downward trend in Q4 2025, with GSA deal volume down 4% but deal value reaching €1.3bn as investors remained interested in scaled platforms with recurring revenue and profitability. Accounting for 58% of total deals, Germany leads funding activity despite a 15% decline q-o-q. Q1 expectations remain cautiously optimistic, focusing on political stability and continued interest in AI technologies.
  • Share Performance: Hopes for easing inflationary pressures and expectations of further monetary easing prompted investors to rotate back into European tech in Q4 2025, reversing the initial downward trend. Concurrently, the VSTOXX index declined towards the end of the quarter as volatility eased, supported by the easing of trade barriers, interest rate cuts, and robust corporate earnings.
  • KPMG Insights: KPMG has strengthened its alliance with SAP SE by becoming an SAP Global Strategic Service Partner (GSSP), positioning the firm within the top tier of SAP’s global partner ecosystem. The expanded partnership focuses on scaling business-led, AI-enabled solutions, leveraging SAP Cloud ERP and SAP Business AI to drive data-driven decision-making, transparency across the AI lifecycle, and measurable outcomes for clients.