M&A Market Dynamics – Software & Technology
- Continuing the jump from last quarter, the broader technology sector total deal value in Q3 2025 increased 21% compared to Q2 2025, and jumped 64% from Q3 2024 with $237B in transaction value. The increase was driven by software specifically, with software total deal value climbing 65% while other technology sectors decreased roughly 16% relative to the prior quarter.
- Compared to Q2 2025, Q3 2025 software deal volume increased 12%, with 883 transactions in the quarter. This represents a marked improvement quarter over quarter, with the Supply Chain Technology sector showing the highest growth QoQ at 43%. The combination of rising deal values and increased volumes suggests a potential market rebound following the series of macroeconomic uncertainties experienced during 1H 2025.
- Deal spending has climbed steadily throughout the year, with Q3 showing growth levels surpassing historical boom periods. According to 451 Research, AI has been a major catalyst for the rebound in M&A activity, driving significant investment from US-listed companies seeking to capitalize on emerging opportunities and strengthen their market positions. Private equity firms have also ramped up activity, encouraged by the interest rate cut later into the quarter. They are eager to deploy capital accumulated throughout the year, setting the stage for a strong finish.
