M&A Market Dynamics – Software & Technology
- After a meaningful drop last quarter, the broader technology sector total deal value in Q1 2025 saw a 75% uptick compared to Q4 2024, with $125B in transaction value compared to $71B in the prior quarter. The growth was consistent across software and other technology segments, increasing 163% and 30%, respectively.
- Total software deal volume increased 18% in Q1 2025 compared to the previous quarter, with 815 transactions, a 39% improvement from the same quarter one year ago. This indicates that the markets have stabilized after the series of interest rate hikes and the tight financing environment faced throughout 2024.
- The significant increase in spending during Q1 2025 was partly driven by strategic buyers, with notable transactions advancing innovation in AI solutions and signaling growing interest in deal activity. Additionally, private equity investing was softer than anticipated, as investors remained hesitant due to continued macroeconomic volatility. However, according to a survey from PitchBook, 75% of respondents expect economic conditions to improve over the course of 2025, reflecting their longer-term investment horizon of three to eight years.
Read Software & Technology M&A Pulse Q1 2025 Full Report
Software & Technology M&A Pulse – Q3 2025
Continuing the jump from last quarter, the broader technology sector total deal value in Q3 2025 increased 21 percent compared to Q2 2025, and jumped 64 percent from Q3 2024 with $237B in transaction value.
Software & Technology M&A Pulse – Q2 2025
After a significant jump last quarter, the broader technology sector total deal value in Q2 2025 saw a 57% uptick compared to Q1 2025, with $196B in transaction value compared to $125B in the prior quarter.
Software & Technology M&A Pulse – Q4 2024
Software and technology M&A activity in Q4 2024 observed a meaningful drop in total deal value compared to the previous quarter, though transaction volumes demonstrated resilience.
Software & Technology M&A Pulse – Q3 2024
M&A Market Dynamics – Software & Technology Software and technology M&A activity in Q3 2024 showed signs of improvement compared to the previous quarter. Total software and technology deal value increased by over 30% compared to Q2, while software specifically observed a 23% increase in deal volume. Valuations remain suppressed compared to the post-pandemic highs,…
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.