DENMARK Trends and Developments Contributed by: Simon Milthers, Thomas Bøgedal Kristiansen, Mikkel Friis Rossa and Emil Steenberg, Bech-Bruun
The Danish Tech Sector: A Main Driver in M&A Growth The technology sector within M&A has remained strong for a long period of time and is con- stantly evolving. As 2025 approaches, several key trends and developments are shaping the market. The Danish technology sector has demonstrat- ed remarkable resilience in the face of recent economic challenges. Although the era of his- torically low interest rates and abundant liquid- ity has come to an end, leading to a slowdown in the M&A market since mid-2022, Denmark’s robust reputation in technology, healthcare, and renewable energy continues to attract significant investor interest. The Danish M&A technology market remained vibrant and dynamic in 2024, playing a crucial role in the global merger mar- ket’s growth. Tech transactions now account for 24% of all reported deals (Mergermarket), high- lighting the sector’s high and expanding influ- ence. The EU’s digital transformation agenda The EU’s digital transformation agenda is sig- nificantly influencing the Danish technology sector. The EU has introduced several legisla- tive measures aimed at enhancing cybersecurity and regulating AI. These regulations are already impacting due diligence processes and deal terms in M&A transactions, making compliance and appropriate investments in cybersecurity critical factors for tech companies going into an M&A process. The extensive use of technology within organisa- tions operating in critical sectors has significant- ly increased their susceptibility to cyber-attacks. This heightened vulnerability has necessitated the introduction of regulatory measures aimed at bolstering cyber-resilience.
To ensure uninterrupted services in key sectors, the Network and Information Security Directive (“NIS2”) was enacted on 16 January 2023 and EU member states were given until 17 October 2024 to implement it. Denmark expects to imple- ment the NIS2 main law by 1 July 2025. In the implementation of NIS2, it is proposed that the telecommunications, energy and financial sec- tors are excluded from the scope of the main law. This is because these sectors already have extensive sector-specific cybersecurity regula- tions in place. For these sectors, there is a spe- cial consideration that the implementation of NIS2 can be integrated with the existing regula- tion. NIS2 aims to secure sectors vital to the economy and society and heavily reliant on Information and Communications Technology (ICT), includ- ing energy, transport, water, banking, healthcare and digital infrastructures. Companies that are subject to NIS2 will be required to implement technical, structural and contractual measures – all from a risk-based approach. Additionally, the authorities must be notified in the event of serious incidents. The key aspects of NIS2 are: • management of cyber- and information secu- rity risks; • creation of comprehensive security policies; • business continuity and crisis management; • supply chain and vendor security; • cyber-hygiene and access controls; • establishment of Computer Security Incident Response Teams and NIS2 authorities; and • creation of a co-operation group for strategic collaboration and information sharing among EU member states.
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