Q3 2024

Software & Tech-Enabled Services M&A Update

In Q3, the North American Technology Software Industry Index increased by 2.0%, but was outperformed by the S&P 500 which increased 4.5% over the same period.
The median EV/Revenue multiple for reported private equity deals increased to 4.96x in 2024 from 4.83x in 2023 but decreased for strategic deals to 2.93x from 3.65x in the prior year.
M&A deal volume in the Software & Tech-Enabled Services sector increased 1.3% in Q3 to 922 deals from 910 deals in Q2 and increased 8.3% from 851 deals in Q3 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased YTD through Q3 to 39.3% from 28.9% in 2023.
North America was the most active region in Q3 with 410 deals. Most notably in the North American market was Renesas Electronics’ $6.1 billion acquisition of Altium, a provider of software for the design of printed circuit boards, in August 2024.