Enterprise SaaS M&A is caught between rebound and a rut.
Consider, first, the good news, of which there’s quite a bit: Q1 2025 saw 210 enterprise SaaS mergers and acquisitions get done, a number on par with the 211 deals inked in Q4 2024, according to recent PitchBook data. That’s also a sizable jump from the beginning of Q1 2024, which saw 165 enterprise SaaS mergers and acquisitions.
Additionally, the total value for VC-backed M&A in enterprise SaaS went up in Q1—hitting $14.6 billion, according to PitchBook—while private equity-led deal count hit a new quarterly record for the sector at 73 deals.
Now, consider the less-good news: The total deal value for enterprise SaaS M&A in Q1 2025 is down quarter-over-quarter by about 24.8%—from $38.7 billion in Q4, to $29.1 billion this past quarter. What’s more, five deals account for about half of the total transaction value across the quarter: Clearlake Capital Group’s $5.3 billion buyout of medical software company ModMed, KKR-backed Cotiviti’s $3.1 billion buyout of healthcare data entity Edifecs, ServiceNow’s $2.9 billion acquisition of enterprise AI tool unicorn Moveworks, CoreWeave’s $1.7 billion acquisition of AI developer startup Weights & Biases, and DNEG Group’s $1.4 billion buyout of Hollywood-focused generative media startup Metaphysic. (Though jarring, we’ve seen skews like this before, notably when it comes to how AI investing is shaking out—a landscape where it looks like there’s lots of action in total deal value, but upon closer inspection, the data reveals a gravitation towards surer, more established bets.)
So, what does all this mean? I think it comes down to two things. The first: AI is underpinning a new wave of enterprise SaaS deals and, despite lingering regulatory and macro pressures, dealmakers are getting comfortable rolling the dice again on market-moving transactions. And second: At the same time, the future remains uncertain, both in terms of how regulatory scrutiny will look in the U.S. and abroad over the company years, and the level of macroeconomic volatility that may (or may not) be coming down the pike.
And that’s how you end up, for now, between a full-fledged rebound and a persistent rut. My guess, here and now, on June 17: We could see a more decisive recovery by the end of the year. Any takers? As always, I would love to hear what you think.
See you tomorrow,
Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Venture Deals
- Juniper Square, a San Francisco-based connected fund software and services provider for the private markets, raised $130 million in Series D funding. Ribbit Capital led the round and was joined by Fifth Wall, Redpoint Ventures, HighSage Ventures, Blue Owl Capital, and others.
- Nabla, a Brooklyn-based clinical AI assistant, raised $70 million in Series C funding. HV Capital led the round and was joined by Highland Europe, DST Global, and existing investors Cathay Innovation and Tony Fadell’s Build Collective.
- Slide, a Norwalk, Conn.-based business continuity and disaster recovery platform for managed service providers, raised $25 million in Series A funding. Base10 Partners led the round and was joined by Outsiders Fund and Top Down Ventures.
- Digger, a San Francisco-based infrastructure dev tools developer, raised $3.6 million in seed funding. Initialized Capital led the round and was joined by Olivier Pomel, David Cramer, Michael Grinich, and others.
Private Equity
- 365 Retail Markets, a portfolio company of Providence Equity Partners, agreed to acquire Cantaloupe, a Malvern, Pa.-based self-service commerce technology solutions provider, for approximately $848 million in cash.
- AE Industrial Partners acquired Air Transport Components, a Gilbert, Ariz.-based aircraft component maintenance, repair, and overhaul services provider. Financial terms were not disclosed.
- Expert Institute, backed by Levine Leichtman Capital Partners, acquired ExpertConnect Litigation Support, a New York City-based expert witness services provider. Financial terms were not disclosed.
- LS Power acquired ENGIE Services U.S., an Oakland, Calif.-based energy solutions provider now rebranded as OPTERRA Energy Services. Financial terms were not disclosed.
IPOs
- Caris Life Sciences, an Irving, Texas-based AI-powered oncology precision medicine platform provider, plans to raise $470 million in an offering of 23.5 million shares priced between $19 and $20 on the Nasdaq. David D. Halbert and Sixth Street back the company.
- Kilcoy Global Foods, an Birtinya, Australia-based meat supplier, filed to go public on the Nasdaq. The company posted $2.2 billion in sales for the year ending March 31, 2025.
People
- Antler, a Singapore-based venture capital firm, added Bob Rosin as a partner. Previously, he was at Defy.vc.
- Chantelle Darby, Accel’s longtime communications partner, is stepping back from the firm. She will be consulting for startups and investors via her new venture, Darby PR.
