Software & Tech-Enabled Services M&A Update

RESOURCE HIGHLIGHTS

• In Q2, the North American Technology Software Industry Index increased by 21.6% and outperformed a 10.2% increase in the S&P 500 over the same period.
• The median EV/Revenue multiple for reported private equity deals decreased to 3.6x through 1H 2025 from 3.9x in 2024, but increased for strategic deals to 3.1x from 2.0x in the prior year.
• M&A deal volume in the sector decreased 4.8% in Q2 to 1,090 deals from 1,145 in Q1, but increased 19.8% from 910 deals in Q2 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation decreased through 1H 2025 to 34.1% from 44.3% in 2024.
• North America was the most active region in Q2 with 474 deals. Most notably in North America was Turn/River Capital’s $4.4 billion acquisition of SolarWinds, a provider of IT management software focused on network performance monitoring, systems management, and cybersecurity, in April of 2025.