Solid Performance in the Market
Mergers and acquisitions activity in the software sector has remained strong over recent years, and deal activity in Q3 2025 showed continued solid performance in the market. The number of deals for software-as-a-service (SaaS) companies was roughly flat sequentially at 317 and up modestly year-over-year, even as the broader M&A market cooled off.
Highlights from the report:
- The number of PE and VC investments in SaaS companies slipped to 1,040 in Q3 2025 vs. 1,196 in Q2 2025 and 1,326 in Q3 2024.
- The median Ebitda multiple for middle market SaaS transactions slipped modestly sequentially in Q3 2025, though multiples have remained somewhat consistent for several quarters now.
- The median Ebitda multiple for private SaaS transactions slipped back below that of public comps in Q3 2025, though multiples remain fairly consistent between the two groups.
- Business productivity software deals accounted for the bulk of SaaS M&A, more than half the industry’s deal count.
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