Q3 2024 Software Industry Trends

Q3 2024 Key Highlights

The largest deal in Q3 2024 was Blackstone and Vista Equity Partners’ announced acquisition of Smartsheet, a leading cloudbased platform for project management and collaboration, for $7.6 billion.

There were 420 financially sponsored transactions in the 1st 3 Quarters of 2024 with an aggregate value of $87.19 billion, representing 28 percent of the total volume and 42 percent of the total value, respectively.

Q3 2024 Key Trends

Total transaction volume in the 1st 3 Quarters of 2024 decreased by 7 percent over the 1st 3 Quarters of 2023, from 1,604 to 1,485.

Total transaction value in the 1st 3 Quarters of 2024 increased by 46 percent over the 1st 3 Quarters of 2023, from $143 billion to $209 billion.

Multiples & Value Trends

The median revenue multiple on a year-over-year basis increased slightly from 3.3x to 3.4x.

The median EBITDA multiple on a year-over-year basis rose by 53 percent, from 11.6x to 17.8x.

Top Ten Deals Through Q3 2024

The top ten deals by value have seen three new additions since our half year report. These include the previously mentioned Smartsheet acquisition, KKR’s announced acquisition of Instructure, an education technology company, and Bain Capital’s announced acquisition of Envestnet, a leading provider of integrated technology, intelligent data and wealth solutions. These three transactions, with an aggregate value of $16.8 billion, represented 39 percent of Q3 2024 transaction value.