Artis Partners: Is FinTech M&A Returning to All-Time High?
European fintech merger and acquisition activity has accelerated dramatically in the first half of 2025, with disclosed deal values for transactions exceeding US$100m reaching US$3.9bn according to analysis from investment bank Artis Partners.
The figure represents nearly double the US$2bn recorded for the entire 2024 period, based on PitchBook data examined by the firm. Current transaction velocity suggests annual deal values could double again by year-end.
Victor Basta, Managing Partner at Artis Partners, says the activity marks a predicted market shift. "This marks the inflection point we predicted. The consolidation wave is no longer coming — it's already reshaping the market in real time," Victor states.
Strategic Focus on Mid-Tier Companies
Acquirers are pursuing companies generating revenues up to £100m (US$137m) that demonstrate steady growth and often operate at profitability or break-even following cost reduction measures and tighter capital market conditions.
Victor explains the strategic rationale. "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," he states.
Recent transactions demonstrate this trend. IG Group completed the £160m (US$219m) acquisition of Freetrade in April 2025, while Worldpay announced its acquisition of fraud prevention platform Ravelin in February 2025. Artis Partners advised on the Freetrade deal.
The commission-free trading platform continues to operate as a standalone brand under co-founder and CEO Viktor Nebehaj. Freetrade had reached 720,000 customers and £2.5bn (US$3.4bn) in assets under administration by the end of 2024, achieving positive EBITDA for the first 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"
Market Dynamics Drive Consolidation
Of the six disclosed fintech transactions exceeding US$100m in 2025, strategic buyers accounted for approximately 95% of total deal value according to Artis Partners' analysis.
Victor identifies the underlying forces. "These exits are being driven by clear strategic logic on both sides. 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 are 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," he states.
The Worldpay-Ravelin transaction reflects this dynamic. Worldpay CEO Charles Drucker stated the acquisition "aligns with our strategy to invest in innovation and AI technology, enhancing the value we provide customers and accelerating our e-commerce growth".
Founded in 2015, Ravelin has developed fraud prediction and prevention solutions for e-commerce merchants.
CEO Martin Sweeney highlighted the benefits, noting that "Worldpay's scale and reach, including processing approximately US$2.5tn in payments volume and more than 50 billion transactions in 2024, will be an immense asset as we accelerate Ravelin's momentum".
Outlook for Second Half
Artis Partners expects transaction momentum to continue through the second half of 2025, with both strategic and private equity buyers focusing on what the firm terms "sector-defining assets" across capital markets and trading technology, consumer and SME financing solutions, payments infrastructure, and regulatory technology platforms.
Victor's analysis includes only publicly disclosed fintech transactions exceeding US$100m, suggesting actual market activity may be higher when smaller deals are considered.
Victor concludes that current dynamics represent a fundamental change in European fintech evolution. "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," he states.