M&A Software Sector Update Q1-2025

Our M&A Software Sector Update provides a concise overview of current developments and trends in the software sector for the first quarter of 2025. In addition to the evolution of software M&A activities, including a summary of selected M&A transactions in Germany and Europe, we analyze the capital market environment by software sub-segments, including valuation multiples at both European and global levels.

Content overview: 

• Recent Share price performance of software companies by segment: Horizontal vs. Vertical vs. Infrastructure Software as well as SaaS vs. Non-SaaS
• M&A sentiment - development of the software M&A market since 2020, particularly in Q1-2025, incl. an overview of selected transactions in the first quarter of 2025
• Software valuation metrics/trading multiples and operating statistics
  1. By region 
  2. By software segment and revenue model
  3. Valuation over time
• The ‘Rule of 40’ as a key (value creation) metric for software companies and LTM performance of listed software companies vs. ‘Rule of 40’ in terms of growth and profitability 

Find out more about the latest developments in the software sector in the full version of the BDO M&A Software Sector Update Q1-2025.