Software M&A activity accelerated further in Q3 2025, with year-to-date deal volume already matching the full year 2024. Q3 set a new record, surpassing Q1, marking the third consecutive quarter with more than 700 transactions, and annualized deal value is on track to exceed 2024’s total by 43%. However the market remains bifurcated and led by mega cap and micro cap deal activity, while the middle market ($100mn-$1bn) has yet to see a sustained rebound as both buyers and sellers remain cautious in a slower-growth, lower-multiple environment.
A surge in transactions above $10 bn, including Palo Alto Networks’ $24.1bn acquisition of CyberArk and Thoma Bravo’s $12.7bn acquisition of Dayforce, has driven deal value for Q3 up 30% year-over-year and put annualized deal value for 2025 on track to reach $307.7 bn by year-end—the highest since 2021.
Learn more in our report.
Global Software Sector Update–Fall 2025 Valuation Data
Our Global Software Sector Update–Fall 2025 aims to identify trends and provide insights across the sector, focusing on key themes, deal activity and market changes. Want to learn more about our valuation data and public company trading statistics? Download our Global Software Sector Update Valuation Data–Fall 2025.
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