Cross-Border M&A Reaches New Heights
Transatlantic M&A activity reached $289 billion in aggregate deal value in 2025, a 19% increase over the prior year and the highest level since 2019. This study provides a comprehensive analysis of cross-border deal flow between the US and Europe, examining deal sizes, sector concentrations, valuation multiples, and the strategic rationale driving transactions.
The resurgence in transatlantic M&A is driven by multiple factors: strong corporate balance sheets, the strategic imperative for geographic diversification, attractive relative valuations in European markets, and the growing importance of technology acquisitions as a pathway to digital transformation. Mid-market transactions (deal values between $50M and $500M) showed the strongest growth, increasing 32% year-over-year.
Sector Analysis
Technology remained the most active sector for transatlantic M&A, accounting for 34% of total deal value. US acquirers were particularly active in acquiring European cybersecurity, AI infrastructure, and enterprise software companies. Healthcare and life sciences represented 22% of deal volume, with a notable increase in US pharmaceutical companies acquiring European biotech firms with advanced clinical pipelines.
Industrial and manufacturing M&A showed a resurgence driven by supply chain reconfiguration strategies, with European manufacturers acquiring US production facilities and distribution networks, and US industrial groups seeking European engineering expertise and market access.
Valuation Trends
European targets continue to trade at a discount to US comparables, with median EV/EBITDA multiples approximately 2-3 turns lower for comparable assets. This valuation gap is narrowing, however, as increased competition among US acquirers for high-quality European assets drives premiums higher. The study provides detailed valuation data by sector, deal size, and geography.