In Q4 2025, the Nordic software and ICT services markets recorded 81 announced M&A transactions, reflecting resilient activity despite more selective conditions and softer public market valuations.

Software led the quarter with 56 transactions and 280 deals on a last-twelve-month basis, in line with 2024 levels. However, quarterly volumes declined both quarter-over-quarter and year-over-year, highlighting increased selectivity in the market. International interest remained strong, with 66% cross-border activity, while PE and PE-backed buyers increased their share to 55%. Software compounders such as Hawk, Visma, and Constellation Software remained highly active. Notably, Finland ranked as the leading target country for the first time in 2025, alongside Sweden.

Valuations moderated to 3.4x EV/Sales and 14.8x EV/EBITDA amid softer public market conditions. Buyers increasingly prioritized defensible market positions, recurring revenues, and strong earnings quality, with vertical software assets and Rule of 40 performance remaining central valuation drivers. At the same time, early 2026 has seen renewed public market pressure on software and SaaS valuations, partly linked to uncertainty around AI-driven disruption, contributing to continued pricing discipline.

ICT services delivered 25 transactions in Q4 (105 LTM), marking a modest improvement quarter-over-quarter but a slight decline year-over-year. Cross-border transactions accounted for 56% of activity, while PE and PE-backed acquirers represented approximately 68% of completed deals. Public valuations strengthened from Q3 to 9.9x EV/EBITDA, supported by a 26% year-over-year increase in Annual Contract Value among Nordic managed service providers, driven by demand for AI, cloud, and managed services.

Looking ahead to 2026, IMAP expects an active but selective transaction environment. Vertical software and workflow-critical solutions are anticipated to remain highly sought after, while cash-generative and specialized ICT services businesses should continue attracting both strategic and financial buyers despite continued public market uncertainty.

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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.