In Q1 2025, enterprise SaaS M&A deal count hit 210, according to PitchBook

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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This story was originally featured on Fortune.com