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State of the Market Feb2025
Yevhen Kondur
27.02.2025
3 Min Read
In January 2025, the IT sector recorded 1,159 deals. This accounts for over 40% of the total volume of mergers and acquisitions worldwide, which amounted to 3,278 deals in January.
The leading areas within the IT sector are IT consulting and software development services.
Deal distribution by region:
- USA – 1,736 deals (53% of the total);
- Europe – 1,253 deals (38%), including:
- Western Europe – 1,150 deals (35%);
- Eastern Europe – 103 deals (3%);
- Cross-border mergers – 733 deals (22%);
- Large deals valued at over $1 billion – 37 deals (1.1%).
Despite a significant decline in activity during the holiday season, the market recovered in the first week of 2025, showing an increase of several times. In the last days of January, the number of transactions remained at a consistently high level, with a significant drop in the value of these transactions. This could be due to the closing of several mega-deals in the first weeks of the month.
Source: Imma
Some of the Most Notable Deals During January
Westinghouse Air Brake Technologies (Wabtec), a well-known supplier of equipment and digital solutions for freight and transit rail transportation, has agreed to acquire Evident’s Inspection Technologies division for $1.78 billion.
Eli Lilly, a global pharmaceutical leader, is acquiring Scorpion Therapeutics, a biotechnology company focused on the development of precision oncology therapies based on small molecules, for $2.5 billion.
Johnson & Johnson (J&J) is expanding its neuroscience portfolio by acquiring Intra-Cellular Therapies in a transformative deal valued at $14.6 billion ($132 per share).
Italian bank Monte dei Paschi di Siena (MPS), the world’s oldest bank, has initiated a $13.86 billion (€13.3 billion) takeover bid to acquire Milan-based Mediobanca, in a deal aimed at reshaping the Italian banking market.
Chinese firm HongSan Capital Group (HSG) is acquiring a controlling stake in the legendary British audio brand Marshall for €1.1 billion ($1.15 billion), marking the largest European investment by a Chinese company to date.
Stryker, a global leader in medical technology, is acquiring Inari Medical for $4.9 billion ($80 per share). The acquisition is aimed at strengthening Stryker’s presence in the peripheral vascular sector, with a special focus on advancing solutions in the venous thromboembolism (VTE) market.
Paychex has agreed to acquire its competitor, Paycor HCM, for $4.1 billion at $22.5 per share, aiming to enhance its AI-powered HR solutions. This acquisition is part of a broader consolidation trend within the payroll and human capital management industry.
E-commerce giant Alibaba is selling its 78.7% controlling stake in Sun Art Retail Group, a well-known hypermarket operator in China, for $1.58 billion (HKD 12.3 billion). The buyer is private equity firm DCP Capital Partners, acting through its subsidiary Paragon Shine.
World Wide Technology (WWT), a global leader in advanced technology solutions, has agreed to acquire Softchoice, a Toronto-based IT service provider, for CAD 1.8 billion ($1.25 billion).
Thomson Reuters, a global company specializing in content and technology, has acquired cPaperless, LLC, operating under the name SafeSend, for $600 million.
**SafeSend, a cloud technology provider, offers innovative solutions tailored for tax and accounting professionals, simplifying the management and secure exchange of confidential financial documents.
Key Insights
1
Increased M&A Activity in the Technology Sector
January 2025 saw a significant rise in mergers and acquisitions within the tech industry, particularly in the areas of artificial intelligence, cybersecurity, and financial technologies.
2
Consolidation in the Energy Sector
Growing interest in renewable energy and sustainable technologies has led to an increase in M&A deals within this sector. Companies are merging to jointly execute green energy projects, driving market consolidation.
3
Regional Trends
- North America: Remained the leader in M&A volume and deal count, especially in the technology and healthcare sectors;
- Europe: Experienced a surge in M&A activity within the energy sector, particularly in renewable energy projects;
- Asia: Showed an increase in deals within the financial sector and e-commerce industry, reflecting the dynamic growth of these markets.
4
Financial Overview
The total value of M&A transactions in January 2025 exceeded the figures from the same period of the previous year, indicating a rebound in investor confidence and stabilization of the global economy following previous challenges.
Key Takeaways
Buy-Side
The IT sector leads with a substantial 40% share of all M&A deals, particularly in AI, cybersecurity, fintech, and software development. Strong interest in medical technology, HR-tech, and renewable energy. The U.S. (53%) and Western Europe (35%) remain key markets. Active consolidation in the financial sector, energy, and biotechnology. Market stabilization is evident, with investors showing an increased willingness to explore assets. The share of mega deals remains around 1% of the total market (37 deals exceeded $1 billion).
Sell-Side
High demand for tech companies, enabling favorable valuations. Buyer competition creates opportunities to attract strategic investors or achieve a lucrative exit. Cross-border transactions (22%) provide access to global players. The strongest interest is in high-margin tech segments, as well as finance, healthcare, and energy. The market is favorable for raising investments or selling businesses at higher valuation multiples.
M&A 2025
deals January 2025
market research
M&A USA
M&A EU
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