After three years of tightened capital, cost rationalization, and slower deal volumes, Brazil’s technology M&A market is showing strong signs of revival. Edoardo Freschet, Director at TH Global Capital, walks through the current state of the sector and what factors are driving its rebound.
M&A activity across Brazil’s technology and tech-enabled services sectors has rebounded after a steep three-year decline. Investors and entrepreneurs alike are reawakening to new opportunities, with deal activity beginning to climb from 2024’s trough.
The resurgence is being led by confidence in the software ecosystem, renewed interest from global strategics, and improving valuation sentiment in 2025.
Source: Pitchbook
Within this rebound, software continues to dominate deal activity. Software M&A accounted for the majority of tech transactions. In the first ten months of 2025 alone, 40 software deals have already been announced, outpacing previous-year momentum. By comparison, IT services posted sixteen transactions in 2024, and thirteen so far in 2025.
The trend underscores a clear narrative: buyers remain drawn to recurring-revenue software models, scalable architectures, and platforms that align with AI, SaaS, and automation trends, while IT services consolidation remains driven by acquisition of specific capabilities, efficiency gains and digital transformation roadmaps.
Private Equity versus Corporate Buyers
On the buyer side, corporate acquirers continue to steer Brazil’s tech mergers & acquisitions landscape. The share of transactions involving corporate buyers stands significantly higher than those led by private equity.
Corporates continue to use M&A as a critical tool to capture innovation, enter high-growth niches, and accelerate digital capabilities – particularly in ERP, cloud SaaS, and verticalized enterprise software. Meanwhile, private equity funds remain measured, pursuing selective platform and bolt-on opportunities.
Source: Pitchbook
Private equity-driven activity is expected to expand in late-2025 as interest rate expectations moderate and funds with expiring vintages seek new portfolio assets.
An overview of landmark transactions in the technology sector in 2025:
Visma’s acquisition of Conta Azul represents nearly R$2 billion in inbound strategic investment and signals renewed international appetite for Brazil’s technology assets. Meanwhile, Evertec has acquired a 75% stake in Tecnobank for R$787 million, expanding its fintech presence in Brazil’s vehicle financing segment. Totvs has also completed its integration of Linx, reinforcing the ongoing consolidation across the ERP and retail technology sectors.
These examples illustrate how both strategic buyers and financial investors are selectively re-entering the market, targeting well-governed companies with profitability, scalability, and clear differentiation.
Source: Pitchbook
Final Thoughts
After a period defined by caution, the Brazilian tech M&A landscape is regaining its rhythm. Corporate strategics are leading the charge, private equity is showing growing selectivity, and software continues to anchor deal flow.
If momentum continues through Q4, 2025 could set the stage for a stronger 2026 – one where data-driven efficiency, disciplined valuations, and international buyer participation define Brazil’s next M&A cycle.
