Helped by a busy September, Q3 software M&A activity closed out with a 19% sequential increase in number of deals and 15% increase in deal value over Q2. The long awaited 0.5 percentage point interest rate reduction by the Fed in September certainly helped grease the post-summer deal wheels. However, the generally strong technology sector earnings reports together with higher observed and expected growth rates in technology spending have been equally important.
On a run rate basis, 2024 is now on track to close with a 75% increase in deal value versus 2023, contrasting however with a 9% reduction in number of deals.
