Bondo Advisors has published its new 30-page report on mergers and acquisitions (M&A) in the Software & SaaS sector, offering a direct and up-to-date analysis of the market with a particular focus on Spain, Portugal, and the broader European environment.
The mergers and acquisitions (M&A) market in the software sector enters 2025 with a clear recovery in activity, both in Iberia and across Europe, following the correction recorded in 2023. This is highlighted in the Software 2025 Report prepared by Bondo Advisors, which positions software as one of the most resilient sectors in the M&A market.
In a context where valuations of publicly listed software companies remain under pressure, the private market continues to show strong appetite for software assets with recurring revenues, scale, and the ability to adapt to artificial intelligence (AI).
According to the study, 2025 is shaping up to be one of the years with the highest number of software transactions since 2021, with volumes returning to historically high levels despite an environment marked by greater discipline in valuations. In Iberia, software maintains significantly higher activity than the overall M&A market, with Enterprise SaaS as the main growth driver.
Private Equity is leading the current software M&A cycle, accounting for the majority of transaction value and driving the return of large majority deals and take-private processes. This momentum is supported by improved macroeconomic visibility and consolidation strategies focused on operational value creation.
In this context, the report identifies consolidation platforms and repeat buyers such as BSG – Business Software Group, Total Specific Solutions, HG, and Visma as particularly active players in the Iberian market, driving integration processes in a highly fragmented ecosystem with a strong recurring revenue base.
The analysis also highlights a rotation of capital toward Europe, supported by the relative improvement in the macroeconomic environment and the convergence of valuations between European and U.S. software companies. Following the correction in publicly listed software in the United States, the historical valuation gap versus Europe has narrowed, strengthening the attractiveness of the European market for cross-border M&A transactions.
In Iberia, the SaaS sector also stands out for its high level of internationalization: 70% of buyers of SaaS companies are foreign, with 45% coming from Europe and 25% from outside the continent. This dynamic reinforces the positioning of Iberian software as a strategic asset within the growth strategies of international groups and investment funds.
Although multiples remain below the peaks reached in 2021 and 2022, the level of activity confirms that software continues to be a structurally strong asset class. Buyers prioritize companies with scale, high-quality recurring revenue, profitability, and data control, maintaining a focus on higher-quality assets.
In smaller transactions, below €10 million in enterprise value (EV), the median valuation stood at 3.7x revenue. In the €10 million to €100 million EV range, the median multiple rose to 4.6x revenue, reflecting a clear premium for size, recurring revenue quality, and scalability.
The report also underscores the growing impact of artificial intelligence in the sector, which is automating key processes, lowering barriers to entry, and reshaping competitive dynamics, while also introducing new pressures on margins and growth expectations.
About Bondo Advisors
Bondo Advisors is an independent firm specialized in M&A transactions in the technology sector. The company advises founders, entrepreneurs, and shareholders on sale, integration, and strategic growth processes, with a particular focus on sell-side transactions. Its team combines experience as financial advisors and entrepreneurs, providing a practical and strategic perspective at key moments of business transformation
The full Bondo Advisors report can be downloaded directly via the following link:
https://bondoadvisors.com/informes-bondo/
cloud technology axon
With a target size of €250 million, the fund aims to complete betwee...
