By Felix Gonzalez, CEO & co-founder of AI-powered market intelligence platform, FounderNest
The financial services M&A landscape this year tells a story of evolution, not expansion. While total deal count remains largely flat, the value of transactions has surged, signaling a clear shift in market priorities.
According to our latest analysis of the market, total global deal value reached $418.9 billion in 2025, a 49% year-over-year increase, despite the total number of deals ticking up by only 0.8% to 2,236. This difference between volume and value represents a market increasingly focused on transformational, rather than incremental, acquisitions.
At the heart of this shift are megadeals – 93 transactions exceeding $1 billion, representing 81% of total deal value, up from roughly 73% last year. These deals are no longer just about expanding customer bases or geographic reach, they are deliberate, strategic bets on technology, infrastructure, and future growth. Buyers are no longer seeking to do more deals, they are doing bigger, smarter ones.
Infrastructure and technology are the drivers
Our analysis shows that the current M&A market is fundamentally technology-led. Across financial services, acquirers are prioritizing capability acquisition over distribution, targeting AI, cloud platforms, payment rails, and regulatory technology.
- Payments Infrastructure
This focus is most evident in payments infrastructure, which has emerged as the backbone of the sector. Anchored by high-profile transactions like Global Payments’ acquisition of Worldpay for $24.25 billion, valuations are averaging 4.5x EV/Revenue, driven by real-time payments, embedded finance, and full-stack platforms. Payments are no longer a support function, they have become the central system of financial services.
- InsurTech
InsurTech has also emerged as a major focus, surpassing $4.8 billion in deal value in the first half of last year. Valuations hover around 3.8x EV/Revenue, driven by AI-enabled underwriting, automation, and platform consolidation. Insurance M&A is increasingly a play for operational efficiency and technological leverage rather than customer expansion alone.
- WealthTech and Asset Management
In WealthTech and asset management, rollups are accelerating. Deals such as Clearwater’s acquisition of Enfusion for $1.5 billion have achieved some of the highest multiples, around 5.2x EV/Revenue. The premium reflects the market’s appetite for SaaS-like infrastructure that ensures recurring revenue and long-term client engagement.
- FinTech
The broader FinTech sector remains high-volume, with 859 deals totaling $16.7 billion, yet AI integration is shaping strategy even in this space. Across the board, the message is clear: acquiring technology capability is now more critical than acquiring distribution alone.
- Emerging categories
Other categories, such as RegTech, are essential for compliance automation amid growing EU regulatory complexity. Meanwhile, crypto and blockchain infrastructure increasingly focus on bridging traditional finance with digital assets, while cross-border B2B platforms and embedded finance continue to rise, reflecting the global ambitions of financial players in 2026.
Deals are faster, but complex
Deals are moving faster, particularly for large transactions. Deals under $500 million now close in roughly three months, while megadeals above $1 billion average nearly 7 months, considerably faster than in 2024.
Regulatory easing, AI-enabled due diligence, and improved buyer-seller alignment are speeding transactions, but nearly 40% of deals still miss their original close date, especially cross-border megadeals. This highlights the point that speed and strategic clarity are not mutually exclusive. Buyers are streamlining processes without sacrificing the rigor required to integrate high-value technology platforms successfully.
Strategic implications
Market leaders are consolidating infrastructure, integrating AI, and positioning themselves for the next decade of financial innovation. Payments, insurance, and data platforms are the primary battlegrounds, while the fastest-growing deals reflect investments in intelligence, automation, and cross-border scalability.
For entrepreneurs and founders, companies with specialised technology capabilities, SaaS-based business models, or cross-border enablement are most attractive in today’s M&A environment. Platforms that enable real-time decisioning, embed AI, or connect global financial flows are likely to command premium valuations.
The future
Our data shows that bigger deals, smarter strategy, and technology are at the core of financial services M&A right now. Megadeals dominate, infrastructure is king, and AI and automation are what is unlocking value. The market is no longer chasing size, it is chasing strategic impact, shaping the future of the financial services industry.
