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Unveiling resilient trends

The following report developed by Baker Tilly Capital, LLC provides an update on the software and technology (S&T) mergers and acquisitions (M&A) market in the second half of 2023 (H2 2023). The report includes an overview of the market performance, M&A activity, transactions by segment and buyer and U.S. M&A activity.

Here are some key takeaways from the report:

  • The S&T sector maintained its robust performance throughout the latter half of 2023, propelled by the relentless momentum of digital transformation across various industries
  • Investors continue to gravitate towards Software as a Service (SaaS) companies, enticed by their unique business models characterized by strong, predictable recurring revenue streams and scalability with higher margins
  • While U.S. S&T M&A activity exhibited a slowdown in the latter half of 2023, with 460 deals totaling $59.7 billion, this trend aligns with pre-pandemic averages, signaling a return to stability
  • In the latter half of 2023, notable SaaS M&A transactions, such as the take-private acquisitions of Alteryx and New Relic by Clearlake Partners/Insight Partners and Francisco Partners/TPG, underscored the enduring appeal of SaaS firms to investors
  • Despite lingering macroeconomic uncertainties and geopolitical tensions, the S&T M&A landscape remains resilient, with participants cautiously optimistic about improved transactional activity in the foreseeable future

Get the pulse of the industry

For an in-depth look at M&A activity in the S&T industry, download a copy of our S&T M&A update: H2 2023. The report includes:

  • Financial performance of specific S&T sectors
  • Major U.S. indexes performances
  • Potential pricing regulation
  • Notable transactions closed during H2
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Mergers and acquisitions reports

See reports for different industries and regions

Baker Tilly Capital professionals develop mergers and acquisitions (M&A) updates in different industries and regions. These reports provide an overview of M&A activity, including:

  • M&A activity by market segment
  • Transaction data for middle market M&A activity
  • Buyers and targets by location
  • Notable transactions closed during the period of the report

To view more on this topic or learn how Baker Tilly specialists can help, contact our team.

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