Software Equity Group Reports Record SaaS M&A Volume & Steady Valuations in Q3 2025

Report finds global software and SaaS M&A deal volume reached record highs as investor confidence and buyer activity surged across key verticals.

SAN DIEGO, CA, UNITED STATES, November 4, 2025 /EINPresswire.com/ -- Software Equity Group (SEG), an M&A sell-side advisory firm specializing in SaaS transactions, today released its 3Q25 SaaS M&A and Public Market Report. Global software and SaaS M&A deal volume reached record highs as investor confidence and buyer activity surged across key verticals.

The report analyzed over 746 SaaS transactions, marking a 26% year-over-year increase, the strongest quarter SEG has ever tracked. Average SaaS M&A multiples held steady at 5.4x EV/TTM revenue. The report also analyzed more than 100 publicly traded SaaS companies that comprise the SEG SaaS Index™. The index rose nearly 10% from April lows, underscoring renewed confidence in leading software companies.

“SaaS markets are showing clear signs of strength,” said Austin Hammer, Principal at Software Equity Group. “A stabilizing macro backdrop and renewed investment appetite are setting the stage for a more active deal environment. It’s one of the most constructive environments for SaaS transactions we’ve seen in years.”

Key Findings from the Report:

· Record Deal Activity: 746 SaaS M&A transactions in 3Q25, on pace to exceed 2,500 deals this year.
· Valuation Stability: Average M&A multiples held at 5.4x, while top-quartile public SaaS companies were trading at 8.4x EV/TTM revenue.
· Private Capital Leadership: Private equity and venture-backed buyers accounted for 58% of all SaaS deals, reflecting continued momentum in platform and add-on acquisitions.
· Vertical SaaS Growth: Sector-specific platforms accounted for 54% of the deal volume, driven by demand for resilient, high-value companies in healthcare, financial services, and real estate software.
· Rule of 40 Leadership: Public SaaS companies scoring above 40% on the Weighted Rule of 40 traded at 12.7x EV/TTM revenue, more than double the market median.

“This renewed momentum illustrates the underlying resilience of the SaaS model,” Hammer said. “The data show investors are willing to pay a premium for durable, capital-efficient software businesses.”

SEG’s quarterly report helps SaaS founders, CEOs, and investors benchmark valuations, identify emerging buyer trends, and assess timing for strategic growth, recapitalization, or exit.

The 3Q25 SaaS M&A and Public Market Report is available for free download at softwareequity.com/research/quarterly-saas-report.

About Software Equity Group (SEG)
Software Equity Group is a leading M&A advisory firm exclusively focused on B2B software and SaaS. Since 1992, SEG has advised growth-stage and founder-led software companies worldwide, combining deep sector expertise with a data-driven approach to achieve exceptional outcomes. Learn more and download research at softwareequity.com

Lindsay Young
3 Aspens Media
lindsay@3aspensmedia.com

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