European Urban Tech Acquisitions (Proptech/Contech/Energy) from 2023 to 2025

Axeleo Capital (AXC) releases its European Urban Tech Exits Analysis, a review of the European Urban Tech ecosystem, tracking acquisition trends in Proptech, Contech, and Energy startups since the beginning of 2023.

From 2023 to Q1 2025, the Proptech, Contech, and Energy acquisition landscape has solidified, reflecting increasing maturity in these sectors. Exit volumes remained steady in 2023 and 2024, with 60 deals each year. Q1 2025 began strongly, recording 28 acquisitions and suggesting a slowly maturing ecosystem.

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Key highlights of the period

1. Geographical distribution of deals

Investments remain predominantly intra-regional: 70% of acquisitions are local, occurring within the US/Canada or Europe. Half of all deals are domestic within the US, with a further 20% within Europe. As a result, the US and Canada continue to be the most active regions for sector acquisitions.

Cross-Atlantic transactions account for 10% of deals, leveraging technology synergies between regions.

Around 20% of deals involve other regions, with growing interest from Asia (Daishin Technologies’ acquisition of Kasa in South Korea), the Middle East (Ramdor Computer Systems’ purchase of Castory in Israel), and Australia (REA Group’s takeover of Realtair). Notable transactions also include Japan’s Yokogawa acquiring Italy’s BaxEnergy, demonstrating cross-border interest. Despite these deals, emerging markets remain underrepresented, with exceptions such as India’s Gram Power, acquired by I Squared Capital in the energy sector.

2. Most active sectors‍

Key sectors & notable deals:

• Real Estate (49% of transactions):
  
  • Data & Visualization (30%): Digital twins (Matterport acquired **by CoStar Group), AI analytics (Hubble acquired by Yardi).
  • Brokerage/Investment (25%): Rent-to-own platforms (Divvy Homes acquired by Brookfield Properties), mortgage tech (Redfin acquired by Rocket Companies).
  • Property Management (20%): IoT-enabled SaaS (Relogix acquired by Hubstar).‍
• Tech Focus: 75% software, with rising adoption of agentic AI (e.g., reHeroes for tenant queries), and computer vision/3D modeling for visualization (Matterport).
  

• Energy & Environment (27% of transactions):
  
  • Energy Management SaaS (WatchWire acquired by Tango Analytics).
  • Smart Grids (Gram Power acquired by I Squared Capital).
  • Renewables (Elgin Energy acquired by Copenhagen Infrastructure Partners).
  • Environmental Assessment: Use of 3D tech, drones, sensors, and satellite imagery for MRV (3GSM acquired by Rocscience). 
• ‍Tech Focus: IoT, sensors, digital twins, predictive and data analytics.
  

• Construction (20-25% of transactions):
  
  • Construction operations SaaS (Tradify acquired by The Access Group, $175M).
  • Compliance/Safety (Nooco acquired by Deepki, carbon tracking).
  • Procurement (SiteTrace acquired by BuildCentrix).‍
• Tech Focus: Data integration (60%), computer vision for site monitoring (Castory acquired by Ramdor Computer Systems).
  

3. Key transactions

2023:

• Gram Power (India) acquired by I Squared Capital (US) for $100M (smart grid solution)‍

2024:

• Matterport (US) acquired by CoStar Group (US) for $1.6Bn (real estate data & visualization using digital twins and 3D tech)
• Tradify (New Zealand) acquired by The Access Group (UK) for $175M (construction operations SaaS)
• Stonal (France) acquired by Aareon France (France) for $100M (ESG compliance in real estate)

Q1 2025:

• Industrious (US) acquired by CBRE (US) for $400M (workplace experience)
• Divvy Homes (US) acquired by Brookfield Properties (US) for $1Bn (real estate brokerage)

4. Emerging trends:

• Technology Adoption & Innovation:
  
  • 75% of acquisitions target data-driven software solutions or platforms. Predictive analytics, AI-driven automation, and SaaS models are leading acquisition targets. Agentic AI adoption is accelerating (e.g., reHeroes for tenant interactions).
  • Computer vision and IoT applications are maturing, especially in 3D modeling, construction monitoring, energy optimization, and smart building management (Matterport, Triax Technologies).
  • Hardware solutions remain marginal but hybrid hardware-software models are becoming strategic, as seen in Heliox’s EV charging infrastructure acquisition by Siemens.‍
• ‍ESG & Decarbonization focus (25-30% of deals):
  Regulatory pressures and investor demand are fueling acquisitions of platforms like Nooco (construction carbon tracking, acquired by Deepki) and Stonal (ESG data management, acquired by Aareon). The Energy & Environment sector remains highly active, with deals such as Danfoss acquiring energy optimization specialist Enfor, SteamaCo acquiring smart grid player SHYFT Power Solutions, and RLE Technologies acquiring renewables expert NDSL.
  

• Geography:
  The US remain the dominant market for large exits in real estate, energy, and construction tech, accounting for over 50% of all transactions including the largest disclosed deals (e.g., Brookfield Properties’ $1 billion acquisition of Divvy Homes). However, most deals remain intra-regional (70% within the US/Canada or Europe), with European acquirers actively consolidating local champions rather than being absorbed by US players (e.g., France’s Deepki acquiring Nooco and Germany’s Aareon buying Stonal).
  
  
• Buyers:
  
  • Startup-to-startup consolidation is the most active segment, representing 40% of deals. Scaling companies are acquiring niche players to expand market share (e.g., TurboTenant’s acquisition of REI Hub in rental investment tools).
  • Corporate strategic buyers account for 30% of transactions, primarily seeking vertical integration and enhanced capabilities. PExamples include Lennar’s acquisition of modular construction firm Veev and Vinci Energie’s acquisition of Kramer & Best to strengthen infrastructure solutions. Mature tech assets, such as BIM, asset management SaaS, and compliance tools, continue to attract attention (e.g., Ideagen’s acquisition of DevonWay for EHSQ software).
  • Private equity firms (30%), are increasingly targeting B2B platforms with strong recurring revenue streams (e.g., EQT’s $1.1 billion acquisition of PropertyGuru).

Methodology: 

Data sourced from Crunchbase (2023–Q1 2025), covering 150+ acquisitions. Sectors defined as Proptech (real estate tech), Contech (construction tech), and Energy & Environment (green tech, energy management & optimization, renewables).

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