In the first quarter of 2025, the software and ICT services sectors recorded a total of 61 deals, a notable decline from a comparable period in 2024. Both the ICT services and software markets contributed to the slowdown, with transaction volumes decreasing by 36% and 40%, respectively. In turn, public market valuation levels for both sectors sustained similar levels as in previous quarters.

In the software sector, a total of 45 transactions were recorded in Q1/2025, while the corresponding figure was 75 during the same period in 2024. However, it’s worth noting that Q1/2024 was an exceptionally strong quarter. When compared to Q1/2023, the current figures actually show an increase in deal activity. The ICT services sector has also experienced subdued activity, with 16 deals recorded compared to 25 deals last year. This deceleration has been largely driven by reserved domestic strategic buyers, whose deal activity has fallen below historical quarterly averages.

The volatile global economic situation and ongoing geopolitical tensions have created some uncertainty in the M&A market, which has negatively affected transaction volumes. However, while the year started quietly, we expect total transaction volume in 2025 to reach levels comparable to 2024. This optimism is supported by the many notable transactions completed during Q1. While overall volumes were down, the deals that did occur were of considerable size and significance.

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Carner's Nordic Software and ICT Services report is a quarterly published review of topical market dynamics, transaction volumes, and valuation developments, offering valuable insights for entrepreneurs, investors, and other stakeholders navigating the complex M&A landscape.