Let’s kick things off with tech! Monument Group’s Zac Williams expects a big spike in European technology deals in 2025, as the region offers more appealing valuations compared with the US.

Next up, we dive into a report from S&P Global Market Intelligence, which shows that while global private equity and venture capital deal value jumped 26.6 percent in February compared with January 2025, it still lagged behind last year’s number, dropping 28 percent from February 2024.

Lastly, ID verification systems are becoming more crucial than ever, fueled by a surge in online fraud, identity theft and tighter regulations like know your customer and anti-money laundering. Also, AI is changing the game for security and cyber threats. Against this backdrop, Corsair Capital has made a move to increase its stake in Munich-based IDnow, securing a majority share.

Favorable valuations  

European technology deals will see significant growth in 2025, underpinned by more favorable valuations compared to the US, Zac Williams, partner at Monument Group, told PE Hub. “Major tech hubs such as Berlin, London and Stockholm benefit from deep benches of engineering talent and Europe’s fragmentation fosters a global mindset from the outset, resulting in faster internationalization.”

Climate tech is emerging as a key area to watch, thanks to Europe’s heightened focus on sustainability and its lead in green transition, London-based Williams said.

On the AI front, infrastructure projects continue to attract sizable capital backing and will benefit from “political enthusiasm” to facilitate large projects, he said. However, there is a growing pool of specialized software and deep tech opportunities targeting sectors like healthcare, finance and legal services, where Europe’s established sectors and stricter regulations present a competitive advantage.

“AI also naturally proliferates where its value-added solutions can serve industries increasingly seeking automation and efficiency, such as in high-value manufacturing.”

Bolt-on acquisitions will also play a big role in overall M&A activity, he said. “Looking at this from the reverse angle, with valuations correcting in the venture and growth space, some high-potential companies may find an appealing liquidity route via strategic sales rather than braving the prospect of down-rounds.”

However, the sector does face some challenges, he added. “Fragmented public markets and lower retail investor engagement limits the pool of liquidity options for European firms and navigating a patchwork of regulations across the region remains complex.”

Below are the tech deals we covered this week in Europe:

Main Capital’s Timegrip buys Software4You

LDC sells Blis in a deal valued at $175m

Arcus-backed FixMap picks up Internet Union

Thoma Bravo-backed USU buys Saasmetrix 

Main-backed Xitres snaps up Hartje Wonen

Exponent to invest in digital transformation provider Hippo Digital

Equistone to sell stake in Timetoact Group to HIG Capital

Blackstone-and Permira-backed Adevinta to sell Willhaben

Sluggish trend

Global private equity and venture capital deal value in February dropped 28 percent year over year from $52.64 billion in February 2024, according to S&P Global Market Intelligence data. The number of deals also saw a decline by about 12.7 percent during the same period.

Looking at the first two months of 2025, deal volume and value were down compared to the same period in 2024. Investment value decreased about 20 percent to $67.89 billion and the number of deals were down to 1,670 from 1,788, the report said.

In fact, January marked the slowest start for US dealmaking in over a decade, according to data PE Hub’s analysis of multiple providers.

However, February showed some signs of recovery, with deal value climbing 26.6 percent from January to reach $37.93 billion.

Technology, media and telecommunications led the transactions in February with 278 deals totaling $13.72 billion, followed by the industrials, with $7.41 billion across 103 transactions. These two sectors also led dealmaking in Q4 of 2024, according to PE Hub data.

Six of the top 10 deals during the month were in the US and Canada. The largest PE transaction was Blackstone’s $5.65 billion purchase of Safe Harbor Marinas, followed by Turn/River Management’s $4.42 billion buyout of SolarWinds.

Securely verified

Corsair Capital has acquired a majority stake in IDnow, increasing its investment in the Munich-based identity verification company.

Founded in 2014, IDnow develops proprietary, AI-powered identity verification technologies that address cybersecurity and digital verification needs.

Corsair first invested in IDnow in October 2019 with a minority stake. Since then, IDnow strengthened its technical leadership position, grew its portfolio of differentiated identification systems and completed two strategic acquisitions, which expanded the company into new geographies, including establishing a leadership position in France, a statement read. In 2021, IDnow acquired Ariadnext and Trust Management.

Now, with a controlling stake, Corsair plans to accelerate IDnow’s market position through additional acquisitions, broadening its reach and strengthening its position across multiple geographies, it said.

NEXUS loading…

The countdown is on for PEI Group’s NEXUS 2025 summit in Orlando, happening March 10-12. Get insights from thought leaders who will be speaking at the event – interviews are available here.

PE Hub editor-in-chief Mary Kathleen (MK) Flynn (mk.flynn@pei.group) and reporter Rafael Canton (Rafael.c@pei.group) will be attending NEXUS 2025, so be sure to reach out to them if you’d like to meet up.