The global software sector maintained strong M&A momentum through the first half of 2026, with annualized deal volume tracking toward approximately 2,670 transactions, positioning the year to become the second highest on record by deal count. Despite this sustained activity, announced deal value remains subdued at approximately $120 billion annualized, reflecting the continued absence of large-scale mega-deals.
Valuation metrics strengthened during the quarter, signaling improving confidence among buyers and investors. Median strategic transaction multiples increased to 6.0x EV/LTM Revenue, while median EV/LTM EBITDA multiples expanded 25% to 20.2x. Public software markets also showed signs of recovery, with median SaaS EV/NTM Revenue multiples increasing to 3.3x, although still below long-term historical averages.
Looking ahead, software companies that combine durable double-digit growth, strong profitability and a credible AI strategy continue to command premium valuations across both public and private markets. As AI adoption accelerates and software platforms become increasingly embedded within critical business workflows, strategic buyers are expected to remain active in acquiring assets that can deliver long-term competitive differentiation.
Global Software Sector Update Summer 2026 - Valuation Data
Our Global Software Sector Update–Summer 2026 aims to identify trends and provide insights across the sector, focusing on key themes, issues and opportunities. To view additional valuation data and public company trading statistics, download our Global Software Sector Valuation Data.
Stay Ahead with Kroll
Investment Banking
Kroll’s Investment Banking practice specializes in middle-market transactions, offering tailored M&A advisory and capital-raising services to private equity firms, corporations, and business owners.
Mergers and Acquisitions (M&A) Advisory
Kroll’s top ranked M&A Advisory practice spans sell-side, buy-side, due diligence, deal strategy and structuring, and capital raising.