Recent trends in 2023 and 2024
In 2023 and 2024, the software sector continued to see vigorous M&A activity despite the rising interest rates and inflation that affected the global economy. Several major deals were announced or completed in these years, demonstrating the resilience and attractiveness of the software sector. Some of the recent examples are:
• Synopsys, a leader in electronic design automation and semiconductor IP, acquired Ansys, a provider of engineering simulation software, for $35 billion in January 2024, making it the most prominent tech deal of the year.
• Snyk, a security platform for cloud-native applications, acquired Helios, a startup that helps developers secure their Kubernetes clusters, for an undisclosed amount in January 2024, strengthening its application security capabilities.
• Salesforce, a cloud-based CRM software giant, acquired Slack, a popular workplace communication platform, for $27.7 billion in December 2023, creating a powerful combination of cloud software and collaboration tools.
• Intuit, a financial software company that owns TurboTax and QuickBooks, acquired Mailchimp, an email marketing platform, for $12 billion in December 2023, expanding its offerings for small businesses and entrepreneurs.
• Square, a payments company led by Twitter CEO Jack Dorsey, acquired Afterpay, an Australian fintech company that offers buy now, pay later services, for $29 billion in November 2023, entering the fast-growing market of alternative payment methods.
These deals show how software companies are pursuing growth opportunities, diversifying their revenue streams, and enhancing their customer value propositions in a competitive and changing market.
Other references mentioned:-
Alpha Sense - Mergers & Acquisitions 2023
