Strong Performance in the Market
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 rose sequentially in Q4 2025 to 360 deals, the most since Q4 of 2021. For the full year 2025, the number of deals nearly matched 2021’s record tally.
Highlights from the report:
- The number of PE and VC investments in SaaS companies slipped to 1,127 in Q4 2025 vs. 1,202 in Q4 2024.
- The median EBITDA multiple for middle market SaaS transactions increased in Q4 2025, though the range of deals was quite wide in the dataset.
- The median revenue multiple, which usually demonstrates more stability than EBITDA
multiples, fell modestly sequentially in Q4 but remains consistent with recent trends. - Private strategic buyers continued to account for the bulk of North American SaaS
deals in Q4 2025, followed by public acquirers and financial sponsors.
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