Software M&A activity opened 2025 on a strong footing, with 714 announced transactions in Q1—a 36% increase over the same period in 2024. Deal value rose 23% YoY, setting a pace that could make 2025 the second most active year on record, behind only 2021. The quarter featured several high-profile deals, most notably Google’s $32 billion acquisition of Wiz, emphasizing the continued strategic focus on cloud security. Other major transactions included the take-private acquisitions of Dun & Bradstreet, Fortnox and Paycor, totaling $16 billion.
Valuation multiples for privately held software companies showed increased divergence, reflecting ongoing market polarization. Scaled, high-performing SaaS businesses continue to attract outsized buyer interest and premium pricing.
