M&A Market Dynamics – Software & Technology
- 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.
- Compared to Q4 2022, Q1 2023 software deal volume was up 18.1% while total value was down 5.7%. This represents a significant reduction in average deal size, a product of fewer large deals combined with softer valuations.
- The market for tech M&A in 2023 remains unstable, especially in light of the recent banking turmoil. Previously surveyed industry constituents from 451 Research anticipated an uptick in deal activity, albeit at lower valuations. That is the trend that played out in Q1 2023, but the remainder of the year may be even more unpredictable as both buyers and lenders exhibit extra caution.
Read Software & Technology M&A Pulse Q1 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 – 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.