M&A Market Dynamics – Software & Technology
- 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.
- Compared to Q1 2023, Q2 2023 software deal volume was down 0.6% while total value was down 7.8%. This represents a continued reduction in average deal size, a product of fewer large deals combined with lighter valuations.
- The M&A landscape continues to evolve in 2023, with strategic deals increasing in overall transaction volume share relative to private equity platform and add-on investments. Through the first half of 2023, the number of financial sponsor-to-sponsor deals is on pace for its lowest annual total since 2016. The shift in transaction mix could be attributable to higher credit costs leading private equity firms into decreased deal activity coupled with top tier investors delaying going to market as sponsors wait for higher valuations to boost returns.
Read Software & Technology M&A Pulse Q2 2023 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 – Q1 2023
The first quarter of 2023 saw a continued decline in deal value while deal volume increased in the software sector compared to the previous quarter, with 704 transactions in the quarter combining for $34.2B in value.