2026 Software M&A Report: Fewer Deals, Higher Valuations
Software M&A deals fell 8% in H1 2026, but valuations reached record highs.
Why it matters: Understanding software M&A trends helps legal tech and corporate law teams advise clients and navigate deal structures effectively amid evolving market conditions.
- 1,132 enterprise software M&A deals occurred in H1 2026, an 8% drop from H2 2025.
- The trailing 30-month median EV/EBITDA rose to 18.8x in H1 2026, reflecting strong valuations.
- SaaS M&A grew by 16% with 2,784 transactions in H1 2026; median public SaaS revenue hit $1.2 billion.
- Strategic buyers led 76% of software deals in 2025, with private equity focusing on select assets.
The software mergers and acquisitions market in 2026 exhibits a selective but robust dynamic. Hampleton Partners reported 1,132 enterprise software deals in the first half of the year, marking an 8% decline compared to the previous half-year period. Despite fewer transactions, valuations remain elevated, with a trailing 30-month median EV/EBITDA ratio climbing to 18.8x, signaling investors' willingness to pay a premium for quality assets.
Growth in software sub-sectors remains uneven. The SaaS market experienced a surge, with 2,784 M&A transactions in H1 2026—a 16% increase from the same period in 2025—and public SaaS companies reporting record median revenue of $1.2 billion alongside a 70% rise in median EBITDA to $110 million (Software Equity).
Meanwhile, the managed service provider (MSP) market remains active with over 120 transactions in Q1 2026, fueled by both strategic and financial buyers as AI innovation drives urgency and investment interest (Drake Star).
Strategic acquirers dominate the landscape: in 2025, they completed 76% of all software M&A deals, up from 71% in 2024, while private equity investors became more selective, concentrating on fewer defensible assets. Miro Parizek, founder of Hampleton Partners, describes the market as disciplined, with strategic buyers leveraging M&A to add capabilities like artificial intelligence and talent (Hampleton Partners, Kroll).
The total value of technology deals exceeded $630 billion in 2025, accounting for 56% of the broader TMT sector's M&A value, propelled by over 800 transactions and an increase in average deal size to $779 million from $525 million the prior year (McKinsey).
Looking ahead, the global software market is expected to more than double from $350 billion in 2025 to $850 billion by 2034, underscoring the ongoing importance of M&A in expanding capabilities amid complex enterprise demands (Drake Star).
Legal tech and corporate law teams should leverage these insights to advise clients on valuation trends, the strategic value of AI-enabled software assets, and the evolving buyer landscape as the sector consolidates around high-conviction targets.
By the numbers:
- 1,132 enterprise software M&A deals — recorded in H1 2026
- 18.8x median EV/EBITDA — trailing 30-month for software deals in H1 2026
- 2,784 SaaS M&A transactions — in H1 2026, up 16% year over year
- $630 billion+ — total value of technology deals in 2025 across 800+ transactions
Yes, but: The overall decline in deal counts masks strong activity in high-growth sub-sectors like SaaS and MSPs, driven by strategic focus on AI and innovation.
What's next: Continued focus on AI-driven assets and managed services is expected to fuel software M&A deal flow through 2026 and beyond.