Q4 2025

Software & Tech-Enabled Services M&A Update

In Q4, the North American Technology Software Industry Index decreased by 7.0% and was outperformed by a 2.9% increase in the S&P over the same period.
The median EV/Revenue multiple for reported private equity deals increased slightly to 4.3x in 2025 from 3.9x in 2024, and increased for strategic deals to 3.0x from 2.0x in the prior year.
M&A deal volume in the Software & Tech-Enabled Services sector decreased 3.6% in Q4 to 1,064 deals from 1,104 in Q3 and decreased 2.7% from 1,093 deals in Q4 of the prior year.
North America was the most active region in Q4 with 459 deals. Most notably in North America was Salesforce’s $8.0 billion acquisition of Informatica, a California-based provider of AI enabled data management software supporting data integration, governance, and analytics, in November of 2025.
M&A volume in the Software and Tech-Enabled Services sector is widely expected to accelerate in 2026 as stabilizing interest rates, improving EV/Revenue valuation multiples, and a growing backlog of scaled, profitable assets align with renewed private equity dry powder and strategic buyer demand.