I regularly track SaaS valuations and M&A activity. I appreciate solid fact-based analyses. For years, I have enjoyed the Software Equity Group’s reporting. They recently published their SEG 2025 Annual SaaS Report. It dives into 2024 SaaS M&A activity and in-depth stats/metrics of the 128 SaaS public firms included in the SEG SaaS Index.

This analysis presents thirteen extracts from the report:

  • 2024 Saas M&A Deal Volume
  • 2024 SaaS Median EV/TTM Revenue Multiples
  • 2024 Horizontal vs Vertical SaaS Deals
  • 2024 SaaS M&A by Buyer Type
  • SaaS Firms in SEG SaaS Index
  • 2024 SEG SaaS Index Median Metrics
  • 2024 Median Operating Ratios & Margin Performance
  • 2024 EV/TTM Revenue vs Weighted Rule of 40
  • Median TTM Growth Rate by Saas Category
  • Median EV/TTM Revenue Multiples by SaaS Category
  • Selected SaaS Categories Key Metrics
    • Analytics & Data Management
    • DevOps & IT Management
    • ERP & Supply Chain
    • Vertically Focused SaaS

2024 Saas M&A Deal Volume

2024 SaaS Median EV/TTM Revenue Multiples

2024 Horizontal vs Vertical SaaS Deals

2024 SaaS M&A by Buyer Type

PE-backed strategics remain the most active buyer type, making up 51% of deals in 2024 and 52% in Q4. Between platforms and portfolio add-ons, private equity was involved in 61% of SaaS deals in 2024.

Strategic buyers (both publicly traded and privately held) were the buyers in 39% of SaaS transactions in 2024, consistent with the prior two years but off the high 40s percentage they comprised in 2021 and 2022. As public strategics (22% of ‘24 deals, high 20’s-mid 30’s historically) effectively operate in the current backdrop, they are expected to increase their priority on M&A acquisitions as inflation and interest rates continue to decline.

SaaS Firms in SEG SaaS Index

2024 SEG SaaS Index Median Metrics

2024 Median Operating Ratios & Margin Performance

2024 EV/TTM Revenue vs Weighted Rule of 40

Median TTM Growth Rate by Saas Category

Median EV/TTM Revenue Multiples by SaaS Category

Selected SaaS Categories Key Metrics

Analytics & Data Management

DevOps & IT Management

ERP & Supply Chain

Vertically Focused SaaS


Also published on Medium.

By John Mecke

John is a 25 year veteran of the enterprise technology market. He has led six global product management organizations for three public companies and three private equity-backed firms. He played a key role in delivering a $115 million dividend for his private equity backers – a 2.8x return in less than three years. He has led five acquisitions for a total consideration of over $175 million. He has led eight divestitures for a total consideration of $24.5 million in cash. John regularly blogs about product management and mergers/acquisitions.