Q2 2024

Software & Tech-Enabled Services M&A Update

In Q2, the North American Technology Software Industry Index increased by 1.9%, but was outperformed by the S&P 500 which increased 4.1% over the same period.
The median EV/Revenue multiple for reported PE deals decreased to 3.9x in 1H 2024, down from 4.8x in 2023, and decreased for strategic deals to 2.9x from 3.7x over the same period.
M&A deal volume decreased 2.9% in Q2 2024 to 910 deals from 937 in Q1, but increased 3.6% from 878 deals in Q2 of the prior year.
As a % of total capital invested in M&A transactions in 1H 2024, PE participation increased to 39.3%, up from 28.9% in the prior year.
North America was the most active region in Q2 with 425 deals. Most notably in the North American market was Hg, Intermediate Capital Group, and Leonard Green & Partners’ $4.0 billion acquisition of IRIS Software Group in April 2024.