After three years of tightened capital, value rationalization, and slower deal volumes, Brazil’s expertise M&A market is displaying sturdy indicators of revival. Edoardo Freschet, Director at TH Global Capital, walks by the present state of the sector and what components are driving its rebound.
M&A exercise throughout Brazil’s expertise and tech-enabled companies sectors has rebounded after a steep three-year decline. Buyers and entrepreneurs alike are reawakening to new alternatives, with deal exercise starting to climb from 2024’s trough.
The resurgence is being led by confidence within the software program ecosystem, renewed curiosity from international strategics, and enhancing valuation sentiment in 2025.
Supply: Pitchbook
Inside this rebound, software program continues to dominate deal exercise. Software program M&A accounted for almost all of tech transactions. Within the first ten months of 2025 alone, 40 software program offers have already been introduced, outpacing previous-year momentum. By comparability, IT companies posted sixteen transactions in 2024, and 13 to this point in 2025.
The development underscores a transparent narrative: patrons stay drawn to recurring-revenue software program fashions, scalable architectures, and platforms that align with AI, SaaS, and automation developments, whereas IT companies consolidation stays pushed by acquisition of particular capabilities, effectivity good points and digital transformation roadmaps.
Non-public Fairness versus Company Patrons
On the client facet, company acquirers proceed to steer Brazil’s tech mergers & acquisitions panorama. The share of transactions involving company patrons stands considerably greater than these led by personal fairness.
Corporates proceed to make use of M&A as a important instrument to seize innovation, enter high-growth niches, and speed up digital capabilities – significantly in ERP, cloud SaaS, and verticalized enterprise software program. In the meantime, personal fairness funds stay measured, pursuing selective platform and bolt-on alternatives.
Supply: Pitchbook
Non-public equity-driven exercise is predicted to broaden in late-2025 as rate of interest expectations average and funds with expiring vintages search new portfolio belongings.
An summary of landmark transactions within the expertise sector in 2025:
Visma’s acquisition of Conta Azul represents almost R$2 billion in inbound strategic funding and alerts renewed worldwide urge for food for Brazil’s expertise belongings. In the meantime, Evertec has acquired a 75% stake in Tecnobank for R$787 million, increasing its fintech presence in Brazil’s automobile financing section. Totvs has additionally accomplished its integration of Linx, reinforcing the continuing consolidation throughout the ERP and retail expertise sectors.
These examples illustrate how each strategic patrons and monetary buyers are selectively re-entering the market, focusing on well-governed firms with profitability, scalability, and clear differentiation.
Supply: Pitchbook
Remaining Ideas
After a interval outlined by warning, the Brazilian tech M&A panorama is regaining its rhythm. Company strategics are main the cost, personal fairness is displaying rising selectivity, and software program continues to anchor deal movement.
If momentum continues by This autumn, 2025 may set the stage for a stronger 2026 – one the place data-driven effectivity, disciplined valuations, and worldwide purchaser participation outline Brazil’s subsequent M&A cycle.
