Q4 2024

Software & Tech-Enabled Services M&A Update

In Q4, the North American Technology Software Industry Index increased by 14.8% and outperformed the S&P 500, which increased 3.0% over the same period.
The median EV/Revenue multiple for reported private equity deals decreased to 4.7x in 2024 from 4.8x in 2023, and decreased for strategic deals to 2.0x from 3.7x in the prior year.
Deal volume in the Software & Tech-Enabled Services sector increased 18.5% in Q4 to 1,093 deals from 922 deals in Q3, and increased 22.1% from 895 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased significantly in 2024 to 44.3% from 28.9% in 2023.
Europe was the most active region in Q4 with 447 deals. Most notably in Europe was Thoma Bravo’s $5.5 billion acquisition of Darktrace, a UK-based leading cybersecurity company specializing in AI-driven solutions, in October 2024.