Q2 2026

Software & Tech-Enabled Services M&A Update

In Q2, the North American Technology Software Industry Index increased by 38.1%, outperforming the S&P 500 which increased 14.0% over the same period.
The median EV/Revenue multiple for reported private equity deals decreased to 3.0x through 1H 2026 from 4.3x in 2025, but increased for strategic deals to 3.7x from 3.0x in the prior year.
M&A deal volume in the sector increased 22.2% in Q2 to 1,463 deals from 1,197 in Q1 2026 and increased 29.6% from 1,129 deals in Q2 of the prior year.
North America was the most active region in Q2 with 642 deals. A notable North American deal was Shield AI’s $12.7 billion acquisition of Aechelon Technology, a San Francisco based developer of defense simulation software.
Total capital invested in M&A transactions decreased to $87.7B in Q2 from $432.7B in Q1 2026, with the prior quarter elevated primarily due to SpaceX’s $250.0 billion acquisition of xAI. Comparatively, the largest Q2 deal was Shield AI’s $12.7 billion acquisition of Aechelon Technology, mentioned above.