Q4 2025

GovTech M&A Update

In Q4, the North American Technology Software Industry Index decreased by 8.5% and was outperformed by a 2.0% increase in the S&P over the same period.
The median EV/Revenue multiple for reported private equity deals in the GovTech sector increased to 11.4x in 2025 from 6.0x in the prior year, but decreased for strategic deals to 4.5x from 4.9x in 2024.
M&A deal volume in the sector increased 22.0% in Q4 to 100 deals from 82 in Q3, but decreased 4.8% from 105 deals in Q4 of the prior year.
North America was the most active region in Q4 with 47 deals in the GovTech sector. Most notably in North America was Salesforce’s $8.0 billion acquisition of Informatica, a California-based provider of cloud-based data management and integration software supporting secure data governance and analytics, in November 2025.
Total capital invested in M&A transactions increased 225.7% in Q4 to $11.4B from $3.5B in Q3, primarily due to the Informatica deal mentioned above. Comparatively, the largest deal reported in Q3 was Vista Equity Partners’ $2.0B acquisition of Acumatica.