European startup M&A activity is booming

European startup mergers and acquisitions (M&A) are experiencing a resurgence due to limited IPO opportunities, according to Sifted. M&A activity involving venture capital-backed European startups has remained consistently high, averaging approximately 75 deals per month, with a peak of 95 transactions in September—the highest volume in over two years. Several factors are fueling this trend. "Acqui-hiring," where companies acquire startups primarily for their talent, is one driver. For instance, London-based AI recruitment startup Jack & Jill is utilizing its $20 million seed funding to acquire companies with strong talent pools. Another significant factor is debt-financed roll-up strategies, exemplified by Milan-based Bending Spoons. The company secured $2.8 billion in debt financing to acquire software firms with substantial user bases, including AOL, Vimeo, and Evernote. This renewed focus on inorganic growth is also invigorating established software companies. Oslo-based Visma is recognized as one of the most active acquirers this year, alongside other prominent players such as US-based Banyan Software, Italian firm TeamSystem, and Belgian unicorn Team.blue.