After peaking in 2021, VC funding for the Smart Logistics sector has declined tremendously in recent years and that trend continued into the first three months of 2025. This dynamic is encouraging companies to instead pursue M&A strategies for growth and liquidity. The low VC funding rates in the Smart Logistics sector seen at the start of 2025 could make companies with promising technologies but limited capital more attractive acquisition targets, potentially driving M&A activity as larger players seek innovation. This environment can lead to consolidation where established firms acquire startups to gain access to new technologies or expand their market reach.

The most active acquirers during the first quarter of 2025 were two strategics, WiseTech Global and Triumph Financial, which each made two deals.

Total disclosed M&A deal values in the Smart Logistics sector reached $800M in the first three months of 2025, with only 8% of transactions revealing financial details as buyers preferred to keep their M&A strategies private. Beyond confidentiality, the low disclosure could stem from factors like smaller deal sizes or strategic acquisitions where public figures aren’t prioritized. 

The first quarter of 2025 witnessed a surge in M&A activity in the Smart Logistics sector with 52 deals seen, up 49% from the same period the prior year. At that pace, dealmaking volumes in 2025 would exceed the 10-year high of 145 transactions achieved in both 2023 and 2024. This signals a strong upward trend in dealmaking and considerable momentum in the sector.