Private equity and venture capital funds are now playing a central role in mid-market cross-border mergers and acquisitions, with a marked interest in companies developing artificial intelligence (AI) solutions.
Globally, approximately 50 % of international mid-market transactions concerning the information technology and healthcare sectors — two fields strongly driven by AI — with a dominance of North American acquirers.
Despite concerns about ongoing conflicts and US tariff policies that could curb growth, the market has remained dynamic: 41,010 M&A transactions were recorded worldwide, compared to 36,442 in the previous 12 months.
These data are from the latest edition of the Compass Report, conducted for Moore Global Corporate Finance, which analyzes transactions between 10 and 200 million euros.
A market close to 200 billion euros
According to John Cowie, President of Moore Global Corporate Finance:
«Despite a challenging macroeconomic environment and geopolitical tensions, the transaction volume achieved in 2025 reached a five-year high.»
«The total value of transactions is also at its highest level since the first report in 2019. This confirms that mid-market companies can no longer rely solely on organic growth to remain competitive internationally.»
«They must integrate a cross-border M&A strategy, in addition to their current activities.»
The report, developed by Vlerick Business School, highlights the resilience of this segment for nearly ten years.
Key figures:
- 4,143 cross-border transactions
- +16 % growth in the number of operations
- 197 billion euros in total value
Other teachings:
- Cross-border transactions represent 39 % of the mid-market (against 33 % in 2024)
- North American and European companies achieve more 75 % of acquisitions
- The total value of transactions (all sizes combined) has increased by 31 % in two years, reaching 1,040 billion euros
According to Kerstin Fehre:
«Cross-border mid-market operations follow their own logic. They are increasingly driven by strategic objectives and execution discipline.»
«Investors use it to gain scale and acquire key competencies, particularly in innovation and technical expertise.»
Strong appeal of technology companies
Investor interest in technology is no longer limited to large publicly traded companies. Mid-sized companies with innovative solutions are also highly sought after.
Information technology represents the most active sector globally. In 2025, 26 % cross-border IT operations concerned artificial intelligence directly.
- 434 AI-related transactions
- nearly 20 billion euros generated
- more 50 % of North American buyers
Key IT Operations Data:
- 39 % of the total number of deals
- 34 % of the total value
- 41 million euros average value per transaction
Conversely, some sectors have rapidly lost their attractiveness. The metals industry, which was very dynamic in 2024, is no longer among the top five sectors in 2025, even though Australia remains an important target due to its rare earth resources.
The United States internationally, Europe more regionally
American buyers — the most active in the world — have strengthened their presence in the UK, Israel, and India, major hubs for technological innovation, particularly in AI.
This strategy allows the United States to secure both:
- strategic mineral resources
- and companies utilizing these materials in tomorrow's technologies
In Europe, companies are also active but favor local operations, particularly between France and Germany.
Notable activity is also observed in Italy, Spain, the Netherlands, and Sweden.
When European companies turn to more distant markets, the United States and Australia appear as preferred destinations—for both industrial (resource) and commercial (market access) reasons.
The United Kingdom is a special case: 34 % British acquisitions are targeting American companies. In total, 264 transactions were completed with a value of 13.6 billion euros.
An evolution of investor profiles
Private equity, venture capital, and hedge funds are strengthening their presence in the mid-market.
They now represent 35 % of financial buyers, compared to 28 % in 2024, to the detriment of traditional institutions and pension funds.
Moore Global Corporate Finance assists numerous financial and industrial players in these cross-border operations.
In 2025:
- 770 transactions (€36 billion) involved buyers present in the countries covered by Moore
- 1,077 transactions (€53.7 billion) concerned targets located in these same countries
The motivations behind the operations
The Compass Report analyzes in detail the factors driving these transactions.
Two major trends emerge:
- uncertainty about access to certain markets
- The race for technological innovation
Main motivations:
- Accelerating the scale-up of technological innovations to industrial levels: 35,8 %
- Acquiring Intellectual Property 21,2 %
- Accessing new markets 14,5 %
