Q4 2022
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Software & Tech-Enabled Services M&A Update
RESOURCE HIGHLIGHTS
- M&A deal volume decreased 18.1% to 981 completed transactions in Q4 2022 from 1,198 deals in Q3 2022 and decreased 38.9% from 1,605 in Q4 of the prior year
- Total capital invested in M&A transactions in Q4 2022 decreased 12.7% to $89B from $102B in Q3 2022 but increased 4.7% from $85B in Q4 of the prior year.
- In 2022, PE investors contributed 54.8% of total capital invested in M&A deals, which was up from 33.4% in 2021.
- North America was the most active region in Q4 2022 with 441 deals. Most notably in North America was Elon Musk’s $44 billion acquisition of Twitter in October 2022.
- The S&P North American Technology Software Index declined 0.9% during the quarter and underperformed the S&P 500, which increased 4.4% over the same period.