Key Takeaways

• M&A activity rose 10% in 2025, driven largely by technology, TMT, and financial services sectors.
• North America dominated deal flow, with $1.938 trillion in transactions within the first nine months of 2025.
• Telecom sector consolidation accelerated, highlighted by major deals like Swisscom–Vodafone Italia and Nokia–Infinera.
• Shareholder activism and private equity take-private transactions reshaped corporate strategies amid market pressure.
• Cross-border M&A increased, with European firms acquiring U.S. companies and U.S. buyers targeting Europe for valuation arbitrage.

As Director of M&A and investment banking, Trevor Lunsford has built his career advising software and technology companies on complex mergers, acquisitions, and capital raises. After beginning as an analyst and progressing into leadership roles, he has helped execute more than five billion dollars in closed transaction value with private equity sponsors and strategic buyers.

Drawing on experience at firms such as District Capital Partners and Ascend, he oversees origination, underwriting, and deal management across vertical SaaS and related sectors. His academic training in finance at Georgia State University, combined with hands on work with leading software investors, provides a practical lens on how deal activity responds to shifting markets.

In this overview of mergers and acquisitions in 2025, he examines how macroeconomic conditions, sector dynamics, and shareholder pressures are shaping today’s transaction landscape.

An Overview of Mergers and Acquisitions in 2025

The mergers and acquisitions (M&A) sector experienced an overall increase in momentum in 2025. According to an MSN article published in November 2025, overall M&A activity increased by 10 percent in the first nine months of 2025, up from the same period in 2024. Several trends contributed to the rise in mergers and acquisitions in 2025.

M&A volume increased to $1.938 trillion in the first nine months of 2025, up from $1.763 trillion in the first nine months of 2024, mainly in North America, which accounts for 60 percent of the activity, driven by the technology, media, telecommunications, and financial services industries.

Industry experts report that this increase was the second-highest since 2022. Interestingly, this increase occurred despite news of tariffs and other geopolitical events. While many have taken a cautious approach, others have engaged in strategic M&A deals.

At the end of 2024, asset management and wealth management deals contributed to this increase. In the second quarter of 2025, an increase in activity in this area is questionable due to economic and market uncertainty. However, fee pressure, the need to scale, and senior leaders transitioning leadership to younger generations facilitated several M&A deals.

In 2025, industry experts are closely monitoring potential deals that could have a significant impact on the industry. In June, rumors swirled about a possible merger between BNY (Bank of New York Mellon) and Northern Trust, a deal that would create a financial services powerhouse in the US. If the two financial services institutions did merge, it would result in the new institution managing over $3 trillion in assets. At the time, the two financial institutions held one meeting regarding the subject, but reached no conclusions. However, Northern Trust intended to remain independent amid further discussions about a deal.

Telecommunications also saw an increase in M&A activity. Notable deals include Swisscom’s acquisition of Vodafone Italia in January 2025, which combined Swisscom’s Fastweb broadband with Vodafone’s mobile services. Nokia’s acquisition of Infinera in late February led to the company expanding its cloud and data center solutions. Charter Communications also merged with Cox Communications in May, merging two of the country’s largest cable companies.

Outside of specific industries, shareholder activism drove the M&A landscape. In 2024, activists aimed to achieve various objectives, with some targeting mid- and large-cap companies and encouraging them to advocate for changes in undervalued companies. Industry experts predict that some activists may encourage company separations as part of a strategy to become smaller and grow.

In 2025, financial sponsors (such as Thoma Bravo) have increased their rate of capital deployment through private take transactions, which involve a private equity group purchasing/acquiring stock from publicly traded companies. In the preceding three years, financial sponsors delayed leaving companies because of higher interest rates (which resulted in higher costs to borrow) and lower corporate valuations. However, in 2024, M&A transactions reached over $200 billion in terms of take-private transactions.

Financial sponsors have seized upon opportunities when publicly traded companies sought to return to private ownership, allowing the companies to grow without the pressure of public shareholders and providing financial sponsors with a suitable investment opportunity.

International M&A activity has also increased. Since 2024, European companies have acquired companies in the United States. While the US economy has strengthened over the last five years, the opposite has been true in Europe. These European acquisitions may be related to countries on the continent wanting exposure to the US market.

Alternatively, companies in the US might acquire businesses in Europe to capitalize on lower valuations. Furthermore, US companies can leverage financial arbitrage agreements, which enable them to strategically obtain the necessary capabilities. In Japan, new policies that promote shareholder transparency and improve mergers and acquisitions transactions have made acquiring/investing in companies more attractive.

FAQs

What drove the increase in M&A activity in 2025?

A blend of sector strength, private equity capital deployment, and strategic consolidation boosted activity.

Which industries saw the highest deal volume?

Technology, media, telecom, and financial services accounted for most of the M&A momentum.

How is private equity influencing 2025 M&A trends?

Financial sponsors accelerated take-private deals after years of slowed activity due to high interest rates.

Did geopolitical uncertainty slow M&A?

No – despite tariffs and global tension, dealmaking remained strong, especially in North America.

What role did international activity play?

European firms pursued U.S. acquisitions for stability, while U.S. buyers targeted Europe for favorable valuations.

About Trevor Lunsford

Trevor Lunsford is a Director of M&A and investment banking who has advised private equity backed software companies across a wide range of mandates. He has overseen origination, underwriting, and execution on more than five billion dollars in closed transaction value, partnering with firms such as CivicPlus, Optimizely, Bullhorn, Diligent, and other leading platforms and investors. A graduate of Georgia State University with both bachelor’s and master’s degrees in finance, he is also an active fitness and motorsports enthusiast.