The mergers and acquisitions (M&A) market in Cyprus continues to thrive, at a time when the sector across Europe is showing signs of stabilisation alongside a slight decline.
At the same time, according to the Oaklins Cyprus M&A Market Report, the technology, financial services and hospitality sectors continue to drive M&A activity in the domestic market, reflecting their ongoing strength and strategic importance to the local economy.
More than double the deals
According to the report, a total of 24 transactions were completed in Cyprus during the first three quarters of 2025, marking a 41% increase compared with the corresponding period of 2024.
M&A activity during the first three quarters of 2025 reflects strong market momentum, with inbound transactions more than doubling compared with the same period in 2024. At the same time, no outbound transactions by Cypriot companies were recorded in this segment of the market, indicating that all M&A activity focused on the acquisition of Cypriot companies by foreign investors.
Based on Oaklins’ findings, although the overall growth rate of M&A activity in Cyprus is slightly lower than in 2024, the market nevertheless continues to demonstrate strong momentum.
It is also noted that in the wider European market, while the total number of M&A transactions during the first three quarters of 2025 was marginally lower than in the same period of 2024, the market continues to show signs of resilience. This slight decline is attributed to prolonged geopolitical and trade uncertainty, cautious deal assessment amid declining interest rates, and a shift towards larger, strategic transactions that kept overall deal value stable.
It is further emphasised that the mix of strategic investors and private equity investors in Cyprus differs from that of the European market, as 100% of transactions in Cyprus were completed by strategic buyers, while private equity investors continue to maintain a strong presence across Europe.
The technology, financial services and hospitality sectors continue to lead M&A activity in Cyprus, reflecting their sustained strength and strategic importance within the local economy.
A total of 24 M&A transactions were recorded in Cyprus during the first nine months of 2025, representing a 41% increase compared with the same period last year.
During the same period, 13,657 European companies were sold, marking a 1.4% decline compared with the corresponding period of 2024.
Moreover, strategic investors accounted for 100% of sector transactions completed in 2025.
Inbound transactions as the driving force
According to Oaklins’ analysis, during the first nine months of 2025, a total of 23 Cypriot companies were acquired, representing a 100% increase compared with the same period last year, when 11 companies changed ownership.
This steady performance underlines the continued appetite for acquiring Cypriot companies and highlights the enduring strength of the local M&A environment.
Outbound deals put on hold
It is noted that Cypriot companies did not proceed with any acquisitions abroad in 2025, signalling a pause in outbound M&A activity. This contrasts with the first three quarters of 2024, when six outbound transactions were recorded.
The absence of outbound deals underscores the ongoing focus of Cypriot investors on domestic opportunities, in contrast to the increased international activity observed among European buyers.
Cross-border deals drive growth
During the first three quarters of 2025, cross-border transactions continued to dominate the Cypriot M&A market, accounting for the majority of total deal activity.
Specifically, 16 cross-border and 7 domestic transactions were recorded, reflecting steady growth in both categories compared with the same period in 2024, when 12 cross-border and 5 domestic deals were completed respectively.
This development represents a 33% increase in cross-border transactions and a 40% increase in domestic transactions year-on-year, highlighting the overall strength of the market and the growing local contribution. Compared with 2023, both cross-border and domestic transactions have expanded significantly, demonstrating Cyprus’ continued integration into international M&A activity.
Where foreign investors come from
During the first three quarters of 2025, foreign buyers in Cypriot M&A transactions originated mainly from Europe, with 29% from Western Europe and 18% from Southern Europe. The United States accounted for 24% of inbound investments, while 24% originated from the Middle East.
For comparison, during the same period in 2024, transactions originated primarily from Western Europe (44%) and Southern Europe (33%), followed by smaller shares from Asia-Pacific and other regions (22%). The 2025 M&A distribution suggests a more balanced regional mix, highlighting Cyprus’ ability to attract investors from a diverse range of international markets.
Sectors attracting investment interest
Regarding transactions recorded in Cyprus during the first three quarters of 2025, M&A activity was concentrated in five key sectors. Technology and digital technology accounted for the largest share of transactions at 41%, followed by financial services (17%) and hospitality & leisure (14%), while consumer & retail, professional & business services, and other services each accounted for 9%.
By comparison, between the first and third quarters of 2024, financial services and healthcare led activity with 18% each, followed by technology & digital technology at 12%.
Notably, the education sector, as well as hospitality & leisure, have demonstrated consistent activity between 2023 and 2025, underscoring their stable presence within Cyprus’ M&A landscape.
