Consolidation in the fintech sector is accelerating, with disclosed deal values for transactions over $100 million in the first half of the year nearing double the total for all of 2024, according to recent analysis from investment bank Artis Partners.
Based on PitchBook data, Artis estimates that by June 2025, disclosed deal value reached $3.9 billion, compared to $2 billion for the entirety of 2024. The current pace suggests this figure could double again by year-end.
“The wave of consolidation is not on the horizon; it’s already transforming the market,” says Victor Basta, managing partner at Artis Partners. “Fintech M&A is being driven by buyers focusing on the maturing middle tier: profitable, commercially proven firms that may not attract the spotlight but possess significant strategic value.”
These companies are not unicorns like Klarna or Revolut, nor are they early-stage single-product fintechs. Instead, buyers are targeting firms generating up to £100 million in revenue, which are experiencing steady growth and are often already profitable or breaking even after recent cost-cutting.
Basta notes, “For successful middle-tier fintechs, growth has become more challenging. This is especially true for consumer-facing companies, where customer acquisition costs have surged, and in the payments sector, where larger competitors dominate. These challenges signal a natural ceiling, which strategic buyers are keen to exploit by acquiring platforms they can scale further or integrate into broader ecosystems.”
“This marks the next chapter in the European fintech narrative. It’s not about creating the next unicorn; it’s about the forthcoming wave of exits and the ecosystem transformation that will ensue.”