Q3 2026

Software & Tech-Enabled Services M&A Update

In Q3, the North American Technology Software Industry Index increased 18.0%, outperforming a 2.0% increase in the S&P 500.
The median EV/Revenue multiple for reported private equity deals in YTD Q3 2026 decreased to 2.8x from 4.3x in 2025, but increased for strategic buyers to 3.9x from 3.0x in the prior year.
M&A deal volume in the Software and Tech-Enabled Services sector increased 3.9% in Q3 to 1,520 deals from 1,463 in Q2, and increased 37.7% from 1,104 deals in Q3 of the prior year.
North America was the most active region in Q3 with 675 deals. A notable North American deal in Q3 was NVIDIA’s $12.9 billion acquisition of Hugging Face, a New York-based developer of a machine-learning community platform.
As a % of total capital invested in M&A transactions, PE participation decreased in YTD Q3 2026 to 23.2% from 38.7% in 2025.