Nordic Software & ICT Services M&A Report Q4 2024
Our recently published Nordic Q4 Sector Report provides deep insights into M&A activity and key trends within the software and ICT services sectors. The market report covers developments through 2024 and includes analysis of market dynamics, updates on transaction activity and an overview of valuations of listed companies in the sectors.
In the fourth and final quarter of 2024, the software and ICT services sectors recorded a total of 92 deals, aligning with the comparable period in 2023. The software market has been a key driver in maintaining this activity, while the ICT services market faced a more challenging quarter. Valuation levels for both software and ICT services firms on Nordic stock exchanges remained relatively stable throughout the year.
With 2024 now behind us, Nordic software M&A activity has continued its steady upward trend in annual deal volume since 2022, reaching a total of 268 deals. International buyers remain dominant in the software sector, with cross-border transactions accounting for 61% of all announced deals in 2024. In contrast, the Nordic ICT services M&A market saw a slight decline, with deal count decreasing to 117 from 123 in the previous year. Notably, the final quarter saw a decrease in private equity involvement, creating some uncertainty heading into 2025 as investors may seek more stable cash flows.
Overall, we maintain a positive outlook for M&A activity in 2025, expecting strong deal volumes to continue. This momentum will be driven by sustained high demand in the technology sector — particularly in key megatrends such as AI, cloud computing, and data analytics.
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Jurgis V. Oniunas
IMAP Chairman
At the start of the year, the outlook for Q1 was highly optimistic, with expectations of slowing inflation, lower interest rates, and improving growth projections. Unfortunately, we live in interesting times. Early in the year, speculation around the disruptive impact of AI on traditional SaaS business models triggered a significant revaluation in parts of the Software sector. More recently, escalation in the Middle East conflict has introduced fresh volatility – pushing oil prices higher, adding upward pressure on inflation, and creating supply-chain uncertainties. While it is too early to tell how these new shocks will eventually affect the global M&A market, we can be sure that our dealmakers around the world are on the ground every day – negotiating, re-evaluating, adjusting positions, and adapting to whatever the environment throws at them to deliver the best outcomes for their clients. They’ve done it for over 50 years, and that’s exactly what they’ll continue to do, no matter the conditions.
