Thanks to Paxton Earl, SEG Analyst and contributor to our upcoming 3Q25 Quarterly SaaS Report, for breaking down the Top 10 SaaS Deals last quarter. Q3 saw $61B in SaaS M&A, driven by the intersection of SaaS and AI. From Thoma Bravo’s $18B quarter to Blackstone’s acquisition of Enverus, buyers are targeting software platforms built on data, vertical depth, and AI capabilities. #Q3 #AI #AIInsights #SaaS
The top 10 SaaS deals from Q3. - Nearly $61B of total value - Average 6.1x EV/Revenue - Average18.6x EV/EBITDA (excluding-Palo Alto). 1) The Thoma Bravo buying spree. They show up twice here, spending almost $15B across Dayforce and Verint. And that is not including their 2 other multi-billion-dollar take-privates of Olo ($1.6B) and PROS (1.4B) in Q3. What I think Thoma Bravo is doing, having spent ~18B in just 1 quarter: They are being extremely aggressive with software businesses where they see future upside in the public markets that can be unlocked by: 1) taking the companies private 2) rolling out AI features and products 3) scaling them even more They want to eventually bring them back to public markets as SaaS + AI giants that command higher multiples and valuations. 2) Blackstone x Enverus ($6.5B). Having worked in oil and gas investment banking, I have used Enverus firsthand and seen the depth, complexity, and data it brings. Replicating this platform would be nearly impossible. It is deeply embedded across the oil and gas industry, from upstream operations to energy finance - used by oil and gas, energy, and finance professionals across Texas and the USA. Seeing this deal close was especially cool for me, because it felt like two chapters of my own career, energy and oil and gas, and now software, coming together in one $6.5 billion dollar deal. 3) The AI thread: Looking across these transactions, each target is either embedding AI directly into its product or being positioned as essential infrastructure for AI. Buyers are not just buying the software. They are buying SaaS companies with unique data, deep vertical expertise, and platforms where AI can create real leverage. Targets with an AI factor: CyberArk: AI-driven identity and access security. Dayforce: AI-powered HR and workforce management. Enverus: Generative AI for energy data and forecasting. NEOGOV: AI in government HR and compliance. Premier Inc.: AI for healthcare supply chain and operations. Sapiens: AI-enabled insurance management. Verint: AI-driven customer experience automation. MeridianLink: AI-powered digital lending and credit tools. What are the buyers’ rationales? 1) Acquire SaaS leaders where AI can unlock new growth and scale. 2) Leverage proprietary SaaS data and workflows to create AI-driven automation and deeper customer value. 3) Take companies private to build AI faster without public market pressure. Bottom line: SaaS + AI is driving the top 10 deals and the top 1% of outcomes, totaling ~$61B in Q3 alone. If you are building SaaS and want to land in the top 1% of outcomes, create a product customers love, and layer in AI to make your software and data even more powerful and valuable. The M&A data shows that strong SaaS + AI businesses have THE most aggressive buyers paying THE top dollar for. For more insights, visit the SEG M&A Deal Database linked below. https://lnkd.in/gHHDX8kZ
Analyst | Software Equity Group | Sell-Side M&A Advisory Firm for B2B SaaS Companies
2wThank you! Really interesting, significant, and massive SaaS deals that occurred all in Q3 2025 alone. It was particularly interesting to see how many of the targets either directly or indirectly had an AI factor associated with the business.