Artikkel
Deloitte M&A sector report
Software and IT services
Quarterly updates with recent M&A transactions, analyses and insights into key industry trends, covering the Nordics.
Q4 2023 | High M&A activity in the Nordic Software and IT services space
The M&A activity level in the Nordics remained high in Q4-23, recording a total of 102 transactions within software and IT services.
The number of software transactions in Q4-23 concluded at 90, an increase from the 73 deals recorded in Q3-23. Furthermore, the 90 transactions recorded in Q4-23 is the joint-most active Q4 in the Nordic software space since 2016 (the historical period covered in this report).
In the Nordic IT services transaction market, 12 deals were recorded, down from 15 deals completed in Q3-23.
By recent transactions as per end of Q4-23 (LTM), the Nordic M&A software pricing level is at a median EV/Sales multiple of 7.8x. For IT services, the current pricing level is at a median EV/EBITDA of 9.4x. Several recent transactions within the software space reflects bids to acquire listed companies at (we have included relevant data for actual acquired stakes).
SaaS multiple valuations increased for Global and Nordic stocks during the quarter. The NTM EV/Sales valuations for the Deloitte Nordic SaaS index concluded at 3.4x, below the L5Y mean of 4.9x. The Deloitte Global SaaS index concluded at 5.6x NTM Sales, below the L5Y mean of 8.5x.
Global IT services stocks valuations currently trading at 9.9x EV/NTM EBITDA, compared to 10.0x at the end of Q3-23. Nordic IT services stocks valuations increased over the quarter to 8.2x EV/NTM EBITDA, up from 7.6x at the end of Q3-23.
Please note that per Q4-23, the Nordic and Global SaaS and IT service indices compositions have been updated to reflect delistings, IPOs and other relevant considerations.
The Q4-23 report reflects transactions involving a Nordic target registered by Mergermarket, supplemented by Deloitte’s transaction experience and insights. Deal volume is based on Mergermarket industry categories computer software and computer services.
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Q3 | 2023
Q3 2023 | M&A activity level in the Nordics remained high
The M&A activity level in the Nordics remained high in Q3-23, recording a total of 88 transactions within software and IT services. The number of software transactions in Q3-23 concluded at 73, a decrease from the 95 deals recorded in Q2-23. However, the 73 transactions recorded in Q3-23 is the most active Q3 in the software space since 2016 (the historical period covered in this report).
Q2 | 2023
Q2 2023 | M&A activity still on the rise
The M&A activity level in the Nordics increased from last quarter during the second quarter of 2023, recording a total of 116 transactions within software and IT services. The number of software transactions in Q2-23 concluded at 95, an increase from the 88 deals recorded in Q1-23. The 95 transactions recorded in Q2-23 is on par with the most active quarter in the software space since 2016 (the historical period covered in this report).
Q1 | 2023
Q1 2023 | M&A activity on the rise in Q1 2023
The M&A activity level in the Nordics increased from last quarter during the first quarter of 2023, recording a total of 101 transactions within software and IT services. The number of software transactions in Q1-23 concluded at 88, a significant increase from the 50 deals recorded in Q4-22. The Nordic IT services transaction market experienced a small increase in volume in the last quarter, with 13 deals recorded, up from 11 deals completed in Q4-22.
Q4 | 2022
Q4 2022 | M&A activity continued to slow down in the final quarter of 2022
The number of software transactions in Q4-22 concluded at 50, down from the 56 deals recorded in Q3-22. For 2022 however, 290 software deals was recorded, up from 247 in 2021, driven by strong H1 deal activity. The Nordic IT services transaction volume experienced some improvement in the last quarter, with 11 deals being recorded in Q4-22, up from 8 deals recorded in Q3-22. The total number of IT services deals recorded in 2022 was 41, down from 72 in 2021.
Q3 | 2022
Q3 2022 | Nordic software and IT services transaction market
The level of M&A activity in the Nordics slowed down in the third quarter of 2022, recording a total of 64 transactions within software and IT services. The number of software transactions in Q3-22 concluded at 56, down from the 89 deals recorded in Q2-22, but on par with levels seen in Q4-21. The Nordic IT services transaction volume also decreased during the last quarter, with 8 deals being recorded in Q3-22, down from 15 deals recorded in Q2-22.
Q2 | 2022
Q2 2022 | Nordic software and IT services transaction market
The high level of M&A activity in the Nordics continued in the second quarter of 2022, recording a total of 104 transactions within software and IT services. The number of software transactions in Q2-22 concluded at 89, up from the 70 deals recorded in Q2- 21, but down from the 95 deals recorded in the first quarter of 2022. The Nordic IT services transaction market increased during the last quarter, with 15 deals being recorded in Q2-22, up from 7 deals recorded in Q1-22. However, this is significantly lower than the 35 deals that was recorded one year ago in Q2-21.
Q1 | 2022
2022 - The high level of M&A activity in the Nordics continued in the first quarter of 2022
The high level of M&A activity in the Nordics continued in the first quarter of 2022, recording a total of 79 transactions within software and IT services. The Nordic IT services transaction market has slowed down over the last quarters, with only 6 deals being recorded in Q1-22, the same as in Q4-21. This is significantly lower than the 19 deals that was recordedone year ago in Q1-21.
Archive
2021 Q4 – A record breaking year of M&A activity within software and IT services in the Nordics
2021 Q3 - Another strong quarter for M&A within Software in the Nordics in Q3
2021 Q2 - The strong M&A market continued in the Nordics in Q2, both within software and IT services
2021 Q1 - The strong Nordic M&A market within software and IT services continued in Q1
