SaaS Deal Count Falls Sequentially
Mergers and acquisitions activity in the software sector has remained strong over recent years, and
deal activity in Q4 2025 showed continued strong performance in the market. The number of deals
for software-as-a-service (SaaS) companies fell sequentially in Q1 2026 to 350 deals, retreating
from a Q4 2025 high that was the strongest quarter since Q4 2021.
Highlights from the report:
- The number of PE and VC investments in SaaS companies slipped to 1,213 in Q1 2026 vs. 1,718 in Q1 2025.
- SaaS PE/VC transaction count moderated meaningfully in Q1 2026 to 1,213 deals, the lowest quarterly volume since late 2023, reflecting a more selective sponsor stance.
- Private SaaS transaction multiples continued trading at a modest premium to public
SaaS multiples on an EBITDA basis, extending a trend that has built over the last several quarters. - Business productivity software continued to lead SaaS M&A with 112 deals,
representing approximately 52% of the total deal count.
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