According to Dealogic and Reuters, Tech M&A rose by 42% year-over-year in 1Q 2024. This confirms what we are seeing in our practice. Buyers are reaching out to us constantly looking for deals. Profitable technology companies, particularly those with recurring revenue, are seeing multiple offers and strong valuations.
In this article from CIO Magazine, https://www.cio.com/article/196371/the-biggest-enterprise-technology-ma-deals.html, they quote Gartner who infers that the buying volume is mostly driven by strategics who are bargain shopping and looking for new technologies (e.g. AI) to enhance their internal capabilities. While there may be some of that, our experience is that PE firms are hungry and have a lot of money sitting on the sidelines looking for investment opportunities.