Mid-market businesses—defined broadly as companies with annual revenues between $10 million and $1 billion—form the backbone of global economies. These enterprises often combine scalability with flexibility, offering a fertile ground for value creation through mergers and acquisitions (M&A). For private equity firms and large corporations, mid-market M&A presents opportunities to enter new markets, gain strategic assets, and generate returns through operational enhancements.
Defining the Mid-Market
The mid-market is typically segmented into:
- Lower Mid-Market: $10M–$100M in revenue
- Core Mid-Market: $100M–$500M in revenue
- Upper Mid-Market: $500M–$1B in revenue
These firms are often mature, profitable, and well-positioned in niche markets but may lack the capital or management depth to reach the next stage of growth independently. That makes them attractive acquisition targets.
Why M&A in the Mid-Market?
According to the National Center for the Middle Market, roughly 20% of mid-sized companies engage in M&A each year, with about 5% involved in divestitures or outright sales. Key drivers include:
- Strategic Expansion: Acquirers seek new geographies, customers, or product lines.
- Succession Planning: Founders or families sell to monetize decades of work.
- Operational Synergies: Buyers identify cost reductions, cross-selling, or tech integrations.
- Private Equity Growth Mandates: Buy-and-build strategies and platform creation are common.
Global Trends and Case Studies
Europe
- Apax Partners acquires Rodenstock
In 2021, Apax Partners bought German eyewear giant Rodenstock for €1.5B to expand its healthcare portfolio. - Apollo exits Oldenburgische Landesbank (OLB)
Apollo sold German bank OLB to Crédit Mutuel in 2025 for €1.7B—marking one of the few major PE exits in German banking.
United States
- Thoma Bravo acquires Anaplan
One of the most prominent tech buyouts, Thoma Bravo acquired enterprise planning SaaS firm Anaplan for $10.7B in 2022 (adjusted later to $10.4B). - Francisco Partners invests in Drawbridge
In 2023, the firm backed this fintech cybersecurity specialist, highlighting ongoing PE interest in tech-enabled services.
Asia
- EQT’s Mid-Market Growth Fund
In 2024, EQT Private Capital Asia closed a $1.6B fund focused on healthcare and technology targets across Asia.
Africa
- M&A remains emerging
While mid-market M&A is nascent in Africa, activity is growing in fintech, logistics, and agri-processing, especially in Nigeria, Kenya, and South Africa.
Australia
- Thoma Bravo acquires Nearmap
In 2022, the US firm bought this geospatial mapping company for AU$1.06B (approx. $730M), making it Thoma Bravo’s first Australian investment.
Notable Mid-Market M&A Deals
| # | Deal | Value | Year |
| 1 | Apollo → Crédit Mutuel (OLB) | €1.7B | 2025 |
| 2 | Apax Partners → Rodenstock | €1.5B | 2021 |
| 3 | Thoma Bravo → Anaplan | $10.4B | 2022 |
| 4 | Francisco Partners → Drawbridge | Undisclosed | 2023 |
| 5 | EQT → Mid-Market Growth Fund | $1.6B | 2024 |
| 6 | Thoma Bravo → Nearmap | $730M | 2022 |
| 7 | AZZ Inc. → Precoat Metals | $1.28B | 2023 |
| 8 | Lincoln Electric → Fori Automation | $427M | 2023 |
| 9 | H.I.G. Capital → Avient’s Chemical Unit | Undisclosed | 2023 |
| 10 | Choice Hotels → Radisson Americas | Undisclosed | 2023 |
| 11 | Vista Equity → Duck Creek | $2.6B | 2023 |
| 12 | KKR → Biotage (Sweden) | $1.22B | 2023 |
| 13 | Blackstone → Dexus Property (AUS) | $1.3B | 2021 |
| 14 | Brookfield → Modulaire Group | €5B | 2021 |
| 15 | Cinven → Arxada (formerly Lonza Specialty Ingredients) | CHF 4.2B | 2021 |
What Worked, What Didn’t
Successful Cases
- Thoma Bravo’s Anaplan acquisition leveraged its SaaS expertise and streamlined operations, leading to solid performance.
- EQT’s Asia growth fund doubled its target, showcasing investor appetite and sectoral focus.
Less Successful Cases
- PE overpaying for niche targets without integration planning (e.g., some consumer brands in Europe) faced margin compression and market exit.
- Cross-border cultural mismatches, such as in tech services, have slowed integrations in certain Asia-US deals.
Strategic Takeaways
- Sector specialization wins: PE and strategics with domain expertise (e.g., cybersecurity, healthtech) often outperform.
- Buy-and-build remains dominant: Especially in fragmented industries like accounting, logistics, and B2B services.
- Mid-market is resilient: Even during downturns, these firms often pivot faster, making them durable assets.
Conclusion
Mid-market M&A continues to be a cornerstone of global corporate strategy. The dynamic intersection of strategic buyers, PE funds, and resilient businesses creates a rich ecosystem of dealmaking. With billions flowing into this segment across all continents, mid-market transactions will remain a key driver of economic transformation well into the future.
Sources
- Financial Times
- National Center for the Middle Market
- The Middle Market
- EQT Group
- Wikipedia: Thoma Bravo
- Wikipedia: Apax Partners