Benelux SaaS and Tech M&A market records robust Q3
In Q3 2025, IT related acquisitions and investments in the Benelux totalled 139 transactions, exceeding market expectations. While summer is traditionally a slower period, activity reached levels comparable to Q3 2020 (146 deals), reflecting a post-COVID trend of continued dealmaking during the summer months.
Market stability and international dynamics
Following some Q2 uncertainty due to geopolitical tensions, including the initially threatened US-EU trade dispute, the market remained stable in July-September. Since the COVID-19 pandemic, summer is no longer a quiet period. While deal volumes remain lower than other quarters, they are strong relative to pre-pandemic levels.
Across Europe, Q3 deal activity rebounded strongly, with a 25% increase in transaction value and record deal volumes, particularly in technology, healthcare, and financial services. Interest rate reductions by the ECB improved financing conditions, supporting renewed investor activity. In the Benelux, deal flow outpaced last year, with increased mandates and pitch activity from both private equity sponsors and founder-led enterprises.
Private Equity: exit activity and extended timelines
Private equity continues to exhibit significant exit appetite, as funds established in 2019-2021 seek to monetise investments. Shorter holding periods in the IT sector imply that many of these positions will exit in 2025-2027.
The average transaction timeline has lengthened to seven to eight months, reflecting heightened buyer scrutiny due to geopolitical risks, currency fluctuations, and cautious client spending. Nevertheless, capital availability remains robust, and rising tech valuations continue to support market confidence. Q4 2025 and Q1 2026 are expected to be active and constructive, particularly for high-quality mid-market IT assets.
Sector dynamics: add-ons, MSPs, and venture capital
- Add-on acquisitions remain the primary driver of Benelux M&A, supporting platform expansion strategies.
- MSP market consolidation continues, with notable activity involving Techone (KKR), Odin, Your.Cloud, Esprit ICT, Interstellar, Smizer, and Conscia. Private equity is expected to increasingly target larger MSP platforms in 2026.
- Venture capital activity remains selective, with investors cautious on profitability and awaiting further interest rate adjustments in Europe and the US.
Foreign interest and international trends
Foreign investor interest in Benelux companies remains substantial. In Q3, buyers originated predominantly from the US, Germany, Scandinavia, and the UK, with the US increasingly dominant. High-profile foreign transactions include Solvinity’s acquisition by Kyndryl, completed in Q4.
Sector performance and outlook
The pipeline for the next six months is robust, particularly for add-ons, carve-outs, and large targets. Acquirers are selectively pursuing high-quality assets. Exits and buyouts are projected to increase in 2026 as 2020-2021 vintage funds seek liquidity.
Technology (Software & IT Services) continues to outperform, supported by recurring revenue models, scalability, and sustained demand for AI and digital transformation. In Q3, deal activity concentrated in B2B SaaS (39), IT services (33), cybersecurity (8), and cloud providers (6).
Fundraising and macroeconomic context
Fundraising is expected to gradually recover, albeit selectively, with limited partner allocations favouring sector-focused, primarily technology-oriented, funds. The median fund close timeline has extended further, reflecting the continued challenges and selectivity in the current market environment.
European interest rate reductions support financing conditions, although lenders remain selective. Benelux macroeconomic growth is modest but stabilising, with ongoing risks from trade tensions and geopolitical uncertainty.
Spotlight: Main Capital and continuation funds
Main Capital remained highly active in Q3, executing multiple domestic and international transactions. The Swedish company Alfa ECare was integrated into the Dutch portfolio company SDB Groep, specialising in healthcare automation, and incorporated into a continuation fund. This structure enables the transfer of select portfolio assets from an older fund to a new fund managed by the same private equity sponsor, allowing for continued growth and development of high-potential companies.
In May, Main Capital raised EUR 520 million for its first continuation fund, intended to scale three existing platform investments across Europe: SDB, Mach (German government software provider), and Björn Lundén (Swedish financial administration software provider).
