European agri-tech businesses are reaching a significant milestone, driving a surge in mergers and acquisitions (M&A) activity in the sector. Dealmakers have noted a marked increase in capital flowing into agri-tech, which is bolstering valuation multiples and attracting the attention of large investment funds. Dominic Emery, partner and managing director at William Blair, highlighted the growing understanding and priority of the sector within the investor community, particularly in Europe. This trend is expected to continue, with 2025 set to be a pivotal year for investment in agri-tech.
A notable example of this trend is the recent investment by KKR and Highland in smaXtech, an Austrian monitoring platform for dairy cows. Founded in 2009, smaXtech enables early disease detection, monitors fertility, and reduces birth-related complications. The platform serves dairy farmers across Europe, North America, and Australia & New Zealand. William Blair advised on the deal, which underscores the increasing interest in agri-tech solutions that enhance farm management and productivity.
The European agri-tech M&A landscape saw record-high deal volumes in 2024, with EUR 1.84 billion across 11 deals, compared to EUR 189.5 million across 24 deals in the previous year. France led the way in terms of deal activity, reflecting the country’s strong focus on agricultural innovation. Other significant deals this year include Hiphen’s acquisition of Aurea Imaging’s drone phenotyping activities and Groupe ISAGRI’s purchase of Sencrop, an ag-tech company specialising in weather and irrigation solutions.
The agricultural sector has historically been a late adopter of technology and software tools. However, regulatory pressures and declining technology costs are now driving adoption. New regulations, such as Europe’s rules on forest-to-agricultural conversion and the EU Corporate Sustainability Reporting Directive (CSRD), are pushing companies to collect more information. This regulatory environment is creating opportunities for tech and software solutions that can help ensure compliance and improve farm management.
Dominik Schwarz, partner at Verdane, noted that technology can be a natural solution for collecting information about the origin and quality of products, as well as for preventing and managing illnesses in livestock and plants. This not only helps in regulatory compliance but also protects margins and raises yields. Verdane’s acquisition of Cropster, an Austrian software platform for the coffee industry, exemplifies this trend. Cropster’s software can navigate the EU’s deforestation regulation, highlighting the practical applications of agri-tech in compliance and sustainability.
The maturity of agri-tech varies across different areas, creating opportunities for private equity investors and consolidators. While sectors like planting, harvesting, irrigation, and logistics are relatively mature, others, such as the use of pharmaceutical products, are still in their early stages. Innoterra, a Swiss-Indian agri-tech firm, exemplifies this diversity. Founded in 2020, Innoterra started with logistics and supply chain tools like InnoDairy and has since expanded into direct farmer-retailer connections with Farmlink and plant vaccines with its Bioscience business. The company is currently scouting for acquisitions, reflecting the broader trend of consolidation in the sector.
Companies like BIOR Biotech, a soil-analysis platform using artificial intelligence, are also gaining attention. Its owner, Revol TT Consulting, has mandated KPMG to find a buyer that can launch the product in the market. As the agri-tech sector continues to mature, expect to see more consolidation and rollup plays, driven by the need for efficiency, compliance, and innovation.
