SaaS M&A and Public Market Report

Buyers of SaaS

SaaS M&A transactions are evaluated based on acquirer backing, which we break into two main groups: Strategic Buyers vs. Private Equity Investors.

Strategic buyers account for 93% of transactions in 1Q25, a group that consists of publicly traded strategics (22%), privately held strategics (21%), private equity-backed strategics (18%), and private equity / venture invested strategics (the most active group with 33%). The public strategic group remained flat QOQ, but below historical highs from 2021–2022. Most remain selective in the current environment given the need to manage their own publicly reported performance.

Meanwhile, the private equity cohort includes private equity firms making platform acquisitions, accounting for 7% of deals in 1Q25. In another lens, deals funded by both private equity and venture capitalists had a hand in 58% of transactions (private equity direct, 7%; private equity backed strategics, 18%; and private equity / venture invested strategics, 33%). Private equity continues to be a highly active driver of M&A.