Total disclosed M&A deal values reached $11.4B, aided by a megadeal, and only 13% of deals disclosed financial terms as buyers preferred to keep their M&A strategies private. The median disclosed M&A deal size was $152M.

RegTech continues to be a popular segment for strategic buyers with the Canadian buy-and-hold company Valsoft Corporation making 3 deals and Clearwater Analytics acquiring 2 companies during the first quarter of 2025. Among financial buyers, ACE & Company bought 2 RegTech companies during this period.

Let’s start by looking at M&A volumes in the RegTech sector during the first quarter of 2025 which was robust at 156 deals, on pace to exceed the ten-year high of 334 transactions achieved in 2024. There was strong demand from strategic and financial acquirers, with Private Equity representing the buyer in 38% of these deals.

Venture capital funding for RegTech firms peaked in 2021 and has declined considerably since then, a trend that continued into the first three months of 2025. Additionally, venture capital deal volumes in the sector have dropped substantially in recent years. These dynamics have encouraged CEOs and founders to instead pursue M&A strategies for growth and liquidity.