Q3 2025

Software & Tech-Enabled Services M&A Update

In Q3, the North American Technology Software Industry Index increased by 5.9% and was outperformed by a 7.9% increase in the S&P over the same period.
The median EV/Revenue multiple for reported private equity deals increased slightly to 4.4x in YTD 2025 from 3.9x in 2024, and increased for strategic deals to 3.4x from 2.0x in the prior year.
M&A deal volume in the sector decreased 2.2% in Q3 to 1,104 deals from 1,129 in Q2, but increased 19.7% from 922 deals in Q3 of the prior year.
As a % of total capital invested in M&A transactions, PE participation decreased in YTD 2025 to 33.0% from 44.3% in 2024.
North America was the most active region in Q3 with 496 deals. Most notably in North America was Synopsys’ $35.0 billion acquisition of Ansys, a Pennsylvania-based engineering software company that provides simulation capabilities for structural, fluid, semiconductor power, embedded software, optical, and electromagnetic properties, in July of 2025.