Software & Technology Update: June 2026

Overview

Software and technology M&A remains active and increasingly polarized, as buyers apply greater selectivity while maintaining strong conviction around high-quality assets. SaaS and subscription-based businesses with durable recurring revenue, mission-critical workflows, and strong retention continue to attract premium valuations from both strategic and financial buyers, in spite of the “SaaSpocalypse”. AI has become the defining theme across the sector, reshaping acquisition rationale and widening the gap between differentiated platforms with data transformation moats and modern infrastructure and legacy software competing without a credible AI narrative. 

Key Takeaways

• Software and technology M&A remains active and increasingly selective, with buyers maintaining strong conviction around high-quality, differentiated assets. 
• Valuations are strongest for SaaS and subscription-based businesses with durable recurring revenue, strong retention, data collection and/or transformation value propositions, and mission-critical workflows. 
• AI has become the defining theme in software M&A, with platforms demonstrating embedded AI capabilities and proprietary data commanding meaningful valuation premiums. 
• Strategic acquirers are pursuing vertical depth, expanded product capabilities, and accelerated AI roadmaps through targeted acquisitions across enterprise software, cybersecurity, and workflow automation. 
• Private equity remains a significant driver of activity, supported by improving financing conditions, stabilizing public valuations, and sustained sponsor appetite for scalable platforms with identifiable expansion opportunities.