Slowdown in Deal Activity
Mergers and acquisitions activity in the software sector has remained strong over recent years,
though a slowdown in deal activity in Q2 2025 dampened some of the recent improvement in deal trends.
Widening the aperture beyond just M&A, the investment environment from private equity and venture capital (including minority investments) into SaaS companies softened in lockstep with the M&A market in Q2 2025.
Highlights from the report:
- The number of deals for software-as-a-service (SaaS) companies slipped to 285 in Q2, down from 329 in Q1.
- The median Ebitda multiple for middle market SaaS transactions expanded again in Q2 2025 despite continued macro uncertainty.
- The median Ebitda multiple for private SaaS transactions nudged above the multiple for public companies in Q2 2025.
- Business productivity software deals accounted for the bulk of SaaS M&A activity, similar to prior periods.
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