Q2 2023

Software M&A Update


  • The North American Technology Software Industry Index increased 13.5% in Q2 and outperformed the S&P 500 index, which increased 6.1% in the same period.
  • The median EV/Revenue multiple for reported private equity deals increased to 7.4x in 1H 2023 from 5.6x in 2022, but decreased for strategic deals to 2.7x from 3.1x in the prior year.
  • M&A deal volume in the Software & Tech-enabled Services sector was down 8.0% to 878 completed transactions in Q2 compared to 954 deals in Q1 and was down 23.4% from 1,146 deals in Q2 of the prior year.
  • As a % of total capital invested in M&A transactions in 1H 2023, PE participation increased to 65.3%, up from 54.8% in the prior year.
  • North America was the most active region in Q2 with 385 deals. Most notably in the North American market was the $13.0 billion public-to-private LBO of Qualtrics by Silver Lake and CPP Investments in June 2023.

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