1st Half 2025 Software Industry Trends

1ST HALF 2025 KEY HIGHLIGHTS

The largest transaction in 1st Half 2025 was Google’s announced acquisition of Wiz, a leading cloud security platform, for $32 billion.

There were 260 financially sponsored transactions with an aggregate value of $45 billion, representing 25 percent of the total volume and 27 percent of the total value.

Three of the top ten highest value deals year-to-date were completed by private equity buyers.

1ST HALF 2025 KEY TRENDS

Total transaction volume in 1st Half 2025 increased by 7 percent over 2nd Half 2024, from 989 to 1060.

In terms of acquirer type, strategic acquirer volume increased 11 percent over a half year basis, from 719 to 800. Private equity acquirer volume decreased 3.7 percent, from 270 to 260.

Total transaction value in 1st Half 2025 increased 89 percent over 2nd Half 2024, from $89.9 billion to $170.3 billion.

The median revenue multiple increased from 2.6x in 2nd Half 2024 to 3.2x in 1st Half 2025.

M&A MARKET OVERVIEW

Berkery Noyes tracked 5,082 Software transactions between 2023 and 1st Half 2025, of which 868 disclosed financial terms, and calculated the aggregate transaction value to be $453.17 billion. Based on known transaction values, we project values of 4,214 undisclosed transactions to be $154 billion, totaling $607 billion worth of transactions tracked over the past two and a half years.

Transactions from 1st Half 2023 to 1st Half 2025 with enterprise values above $160 million received a median revenue multiple of 5.6x, whereas those in the $10-$160 million range garnered a median revenue multiple of 2.6x.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 3.17x revenue and 14.10x EBITDA.