Industry Report: Technology Software Q1 2025 [Peakstone]

Key Report Highlights

• Strong M&A Activity – The technology and software sector has seen consistent deal flow, with over 1,300 M&A transactions in 2024, demonstrating strong demand from both strategic and financial buyers.

• Rising Valuations – Median EV/EBITDA multiples for technology deals have remained elevated, with some transactions reaching over 20x EBITDA, reflecting the continued premium for high-growth software and SaaS companies.

• Sector Performance Outpacing Market – The Software (569%) and SaaS (328%) indices have significantly outperformed the S&P 500 (220%) over the last decade, reinforcing investor appetite for scalable and recurring revenue business models.

• Notable Transactions – Recent deals include Boomi’s $100M acquisition of Rivery Technologies, Snowflake’s $170M purchase of Datavolo, and Siemens’ $10.7B acquisition of Altair Engineering, highlighting ongoing consolidation trends in data, AI, and cloud-based solutions.

• Favorable Middle Market Dynamics – Companies with $10M-$500M in revenue remain attractive acquisition targets, particularly in AI-driven analytics, cybersecurity, and cloud-based automation, where buyers seek scalable growth opportunities.

Peakstone Group is a Chicago-based, 40+ person investment bank that specializes in mergers and acquisitions advisory and capital raising. An Axial member since 2010, Peakstone works across a variety of industries and has marketed more than 170 deals on the Axial platform.

Peakstone is a trusted member of the Axial Partnership Program and contributes content and industry insights to Axial’s Middle Market Review. The following report is a Peakstone Group publication, which has been approved for Axial to share with its network.

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