Software M&A activity accelerated through 2025, hitting record deal volume at 2,897 announced transactions—a 35% year-on-year increase. Aggregate deal value reached $291 billion (bn), the second highest on record. The surge was led primarily by strategic acquirers, who drove the highest share of activity in nine years at 71% of total announced deals, reflecting a wave of companies acquiring AI-critical capabilities and platforms to reposition for the next technology cycle.
Strategic buyers also supported higher valuations, paying a 27% premium to financial sponsors—at 5.6x enterprise value/last twelve months (EV/LTM) revenues versus 4.4x—representing both the largest strategic premium in a decade and a 14% increase compared with 2024’s 4.9x.
Want to know more about the industry insights and notable deals in the quarter?
Learn more in Kroll's latest Global Software Sector M&A Industry Insights – Winter 2026.
