Q1 2024

Software & Tech-Enabled Services M&A Update

In Q1, the North American Technology Software Industry Index increased by 8.8%, but was outperformed by a 10.8% increase in the S&P 500 over the same period.
The median EV/Revenue multiple for reported private equity deals increased to 6.3x in 2024 from 4.8x in 2023, but decreased for strategic deals to 2.6x from 3.7x in the prior year.
M&A deal volume in the Software & Tech-enabled Services sector increased 4.7% to 937 completed transactions in Q1 compared to 895 deals in Q4, but decreased 1.8% from 954 deals in Q1 of the prior year.
As a % of total capital invested in M&A transactions in 2024, PE participation decreased to 26.0%, down from 28.9% in the prior year.
North America was the most active region in Q1 with 406 deals. Most notably in the North American market was Cisco Systems’ $28.0 billion acquisition of Splunk in March 2024.