Artificial Intelligence is the driving force behind a surge in mergers and acquisitions (M&A) in Portugal’s tech sector, a trend expected to continue throughout 2025. Companies seek to diversify portfolios, expand customer bases, enter new markets, and acquire talent.
The year began with major deals, such as NOS acquiring Claranet Portugal from its English parent for €152 million, a transaction set to shake up M&A rankings. In 2023, Portugal’s IT sector recorded 70 deals—second only to real estate—despite an 18% year-on-year decline, in line with broader M&A trends.
AI is reshaping M&A dynamics. A Bain survey found that 21% of professionals already use generative AI in deal-making, a number expected to rise to 33% by year-end. In the next five years, AI could streamline all M&A stages, from deal sourcing to integration.
M&A activity is fueled by portfolio diversification, international expansion, and cost efficiency. According to Paulo Morgado, former Capgemini VP and now a partner at Antas Cunha, tech companies acquire AI and cybersecurity firms to accelerate innovation while cutting structural costs.
Private equity and venture capital are also key players. Portugal’s tech industry saw 122 venture capital rounds in 2024, totaling €886 million—a 55% increase from 2023. Meanwhile, private equity transactions hit €3.5 billion, up 56%.
Notable deals include Amadeus' €320 million acquisition of Vision-Box, a leader in biometric border control. PwC’s José Melo Guimarães stresses the importance of thorough preparation to avoid valuation adjustments and deal collapses.
With strong investor interest and Portugal’s reputation for skilled talent, competitive costs, and innovation, the country remains an attractive hub for technology M&A.
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