M&A Market Dynamics – Software & Technology
- The fourth quarter of 2022 saw a further decrease in both deal volume and deal value in the software sector compared to the third quarter, with 582 transactions in the quarter combining for $36.3B in value.
- On a full-year basis, software deal volume in 2022 was up 11.1% compared to 2021 while total value was down 5.1%. Average deal size also declined which indicates there were fewer large deals coupled with cooling valuations.
- The outlook for tech M&A in 2023 remains uncertain, but many within the industry believe activity will pick up, though valuations are not expected to follow suit. A survey conducted by 451 Research, which consisted of constituents in the tech M&A community, revealed that 46% of respondents anticipated an increase in M&A activity while 66% expected a decrease in valuations relative to 2022.
Read Software & Technology M&A Pulse Q4 2022 Full Report
Software & Technology M&A Pulse – Q2 2024
Transaction volume and total value both dropped noticeably in Q2 2024 compared to the previous quarter for the software & technology sector. Continued economic and political uncertainty kept many investors on the sidelines as they opportunistically sought deals.
Software & Technology M&A Pulse – Q1 2024
Transaction volume and total value increased significantly in Q1 2024 compared to the previous quarter for the software & technology sector.
Software & Technology M&A Pulse – Q4 2023
After a strong uptick last quarter, broader technology sector total deal value fell 23 percent compared to Q3 2023 and finished closer to the prior four quarters’ average, with $78B in transaction value.
Software & Technology M&A Pulse – Q3 2023
The broader technology sector demonstrated a strong uptick in deal value in the third quarter of 2023 compared to the previous quarter, increasing more than 70 percent, with software specifically outpacing that growth with total deal value increasing more than 130 percent to $99B.
Software & Technology M&A Pulse – Q2 2023
Despite the broader technology sector showing an uptick in both deal value and deal volume in the second quarter of 2023 compared to the previous quarter, software specifically saw a modest decrease in value while volume remained largely flat, with 629 transactions in the quarter combining for $27.7B in value.