M&A Market Dynamics – Software & Technology
- Q4 2024 saw a meaningful drop in software and technology total deal value, falling over 50% to $71B compared to $145B in the prior quarter. The decline was consistent across software and other technology segments, declining 53% and 49%, respectively.
- Despite the significant drop in deal value, software transaction volume was actually up in Q4 2024 compared to the previous quarter, increasing by 1%. This juxtaposition, paired with a noticeable decline in transactions greater than $250M, indicates an uptick in deal volume for smaller companies.
- Many within the technology M&A community anticipate a significant rebound in deal activity in 2025. According to a survey from 451 Research, 80% of respondents expect an increase in tech M&A spending in 2025, while 58% predict an increase in valuations. Though respondents were optimistic heading into 2024, the year ultimately fell short of predictions, with tech M&A spending falling ~20% short of the previous decade’s average spending. The optimism for 2025 is primarily due to an anticipated reduction in interest rates, the new U.S. presidential administration, and an expectation that strategic acquirers will be more competitive than in 2024.
Read Software & Technology M&A Pulse Q4 2024 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 – Q1 2025
After a meaningful drop last quarter, the broader technology sector total deal value in Q1 2025 saw a 75 percent uptick compared to Q4 2024, with $125B in transaction value compared to $71B in the prior quarter.
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.