Technology M&A in Latin America: Trends and Insights for Owners

As we move through 2025, Latin America’s mergers and acquisitions environment presents a nuanced picture. While overall deal activity has slowed—with an 11% drop in transaction volume in Q1 alone—the technology sector continues to stand out as a resilient and opportunity-rich area for investment.

If you’re an Owner thinking about selling your business, understanding what’s driving investor interest and how your company can strategically position itself is critical.

Technology Businesses Continue to Attract International Investors

Despite a general decline in M&A volume across Latin America, technology continues to attract investor interest. According to Englobally LATAM’s Q1 2025 M&A Outlook, software, fintech, and digital infrastructure remain among the most sought-after sectors.

Peru and Mexico have emerged as key markets. In Peru, fintech, edtech, and healthtech businesses continue generating strong international investor interest. Mexico’s developing regulatory framework for artificial intelligence has similarly boosted investor confidence.

The Importance of Regulatory Changes

Across the region, regulatory developments are shaping investment decisions. Countries such as Mexico, Argentina, and Colombia are refining laws around data protection, AI, and foreign investment. For example, Argentina recently blocked a major telecom acquisition over antitrust concerns. These regulatory shifts may seem daunting, but they often lay the groundwork for greater transaction clarity and certainty over time.

As an owner-operator, it’s crucial to proactively align your business with evolving regulatory requirements to maximize interest.

The Rise of Digital Infrastructure and Connectivity

Latin America is undergoing rapid digital transformation. According to GSMA Intelligence, 4G connections are expected to reach 468 million in the region by the end of 2025. This expanding infrastructure is creating tailwinds for M&A in telecom, IT services, and SaaS. Now is a great time to assess how attractive your business may be to strategic buyers.

Strategic Opportunities for Owner-Operators

In this evolving landscape, leading a successful sale process depends on:

  • Understanding and proactively responding to regulatory requirements
  • Demonstrating your business’s role in regional digital transformation
  • Exploring local partnerships to showcase your understanding of regional market nuances

Despite complexities, the opportunity for sellers is significant. Latin America’s maturing technology sector remains attractive, and international investors are keen to expand their geographic presence.

Sources
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