Software & IT Services M&A Pulse – FY 2025 Review

2025 was the year AI stopped being a premium offering and became an expectation.

Across global Software & IT Services M&A, the market delivered strong average valuations – but within that average sits a striking premium for AI/BI assets compared to traditional IT Services. This difference reveals the truth of what’s taking place globally in this sector: dealmaking in 2025 was highly selective, and the gap between well-positioned and merely available assets widened significantly.

While the Software & IT Services sector enjoyed a recovery in overall deal volumes – with private equity activity in Europe rising approximately 8% YoY, there was a fundamental shift in how buyers approach transactions. Instead of focusing on AI features, strategic acquirers are searching for genuinely competitive opportunities that off-the-shelf models cannot replicate.

To learn about this and more, read the full report below: