Nordic Software & ICT Services M&A Report Q4 2024
Our recently published Nordic Sector report for Q4 2024 provides valuable and up-to-date insights into M&A activity and key trends in the Software & ICT Services segments. It covers developments in 2024 and analysis of the current market, updates on transaction volumes, and an overview of valuations of listed companies in both sectors.
During the fourth and final quarter of 2024, a total of 92 deals were recorded in both segments, which is in line with the corresponding period in 2023. In the Software segment the number of transactions continued to rise, while ICT services had a more challenging quarter. Valuation levels for both software and ICT services companies on the Nordic stock exchanges remained relatively stable throughout the year.
With 2024 behind us, M&A activity in the Nordic Software sector 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 market saw a slight decline in the number of deals, which fell to 117 from 123 the year before. It is noteworthy that the last quarter showed a decline in transactions by private equity buyers, causing some uncertainty for 2025 as investors may be looking for more stable cash flows.
In summary, we have a positive outlook on upcoming M&A activity in 2025, with an expectation of a continued increase in the number of transactions. This momentum will be driven by continued high demand in the Technology sector - particularly in key megatrends such as AI, Cloud Computing, and Data Analytics.
Download the full report below.
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.
