Software M&A update April 2026
AI is changing the logic of M&A in the software sector, but M&A activity remains high, driven by the need to acquire AI capabilities.
Ongoing digital transformation and the increasing adoption of artificial intelligence continue to drive sustained demand for scalable, cloud-based solutions. On the other hand, the emergence of increasingly powerful generative AI tools has raised questions about the potential disruption of traditional enterprise software functions, which ultimately led to a correction in the valuations of many publicly traded software companies in early 2026.
Following the peak during the pandemic, M&A activity in 2025 continues to stabilize at a normalized level. While recurring revenue and scalable business models remain a key foundation, the focus is increasingly shifting toward AI-driven growth prospects and technological differentiation.
Valuation multiples remain stable overall, ranging from 2.5x to 6x revenue depending on the size of the transaction. Financial investors continue to pay premiums for high-quality assets, while strategic buyers take a more selective and disciplined approach. Company size is also a key driver of the multiples paid.
Despite short-term market fluctuations, the outlook remains positive. As AI integration advances and digital business models gain further importance, the sector continues to offer attractive M&A opportunities.
Download the full report for deeper insights
Our two industry experts will be happy to advise you on all matters relating to M&A transactions in the IT services sector or the broader technology, media and telecommunications sector.
Contact our local industry experts
Partner
View profile
Partner
View profile