Cross-border M&A activity between the Nordic and DACH regions is showing renewed momentum, reflecting a shift toward strategic consolidation across Europe’s mid-market. While both regions have demonstrated resilience in their domestic deal activity, with the Nordics recording over €80 billion in transactions in H1 2025 and DACH volumes rising by roughly 15% year-on-year according to studies by KPMG and PWC respectively, a growing share of this activity now stems from corporates and sponsors pursuing cross-regional growth opportunities.

Several key factors are driving this trend. First, sector alignment between the two regions is strong: both host mature technology, IT services, and industrial-innovation ecosystems that complement each other. Nordic firms often bring digital or sustainability-led capabilities, while DACH acquirers provide scale, capital depth, and established industrial infrastructure.

Second, differences in valuation multiples have widened. Nordic mid-market deals are trading at EV/EBITDA multiples of around 12.9x, compared with 7.3x in the DACH region according to ION Analytics and PWC respectively, which makes DACH markets an appealing option for Nordic acquirers (while also demonstrating existing demand for Nordic companies). Nordic investors are eyeing German and Swiss targets to gain market access and balance their exposure. Meanwhile, the Nordics remain more resilient on growth, prompting DACH buyers to look north for attractive assets with international scalability.

Third, the return of corporate acquirers is reshaping deal dynamics. In the DACH region, the share of financial investor deals fell from 53% to 45% in H1 2025, highlighting a rotation back toward strategic transactions. Large corporates are using M&A to accelerate digital transformation, expand service portfolios, and secure a long-term competitive edge.

This cross-border trend underscores the importance of pan-European connectivity. As European markets stabilise, these synergies are set to remain a defining feature of European mid-market M&A in 2025 and beyond.

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