Deal making is picking up in the fintech sector.
The number of disclosed deal value for transactions over $100 million in the first half of the year is already close to double the total for all of 2024.
The figures come from investment bank Artis Partners.
It reckons that disclosed deal value stands at $3.9bn, compared to $2bn in 2024.
What’s more, estimates show that the figure of $3.9bn could double by the time the year is out.
The sweet spot for buyers are not the unicorns, but companies generating up to £100m in revenue, showing steady growth, are profitable stage, have undergone cost cutting and operate under tighter capital conditions.
Victor Basta, managing partner at Artis Partners, told the media: “The consolidation wave is no longer coming — it’s already reshaping the market in real time. Fintech M&A is being driven by buyers targeting the maturing middle tier: profitable, commercially proven companies that are no longer breakout IPO stories but hold strong strategic value.
“For successful middle tier fintechs, growth has become more expensive. This is particularly true for consumer facing players where customer acquisition costs have risen, and also in the payments space where beyond a certain size, growth stage fintechs find it harder to compete with much larger incumbents. These problems associated with hitting a natural ceiling, and that’s exactly where strategic buyers see opportunity. They’re acquiring platforms they can scale further or fold into broader ecosystems.
“This is the next chapter in the European fintech story. It’s not about the next unicorn. It’s about the next wave of exits — and the reshaping of the ecosystem that will follow.”