Australia's leading specialist M&A advisor to the software sector
Latimer Partners has advised on over 20 software transactions since 2020, over 50%+ of which are cross-border with buyers typically from North America or Europe. We work with growth-stage software businesses including AI-native applications, platforms serving specific industry verticals as well as horizontal platforms:
We bring deep sector knowledge and direct relationships with the most active global and local acquirers, consistently achieving premium outcomes in a dynamic market being reshaped by generative and agentic AI. We advise founders, boards and private equity owners throughout the corporate lifecycle: strategic positioning, bolt-on acquisitions, and high-value exits. Our software clients are typically valued between A$20 million and A$200 million.
Australia's software sector is in a period of structural transformation. AI is reshaping buyer expectations and business models. A new M&A cycle is emerging, but it will be selective. Acquirers are concentrating capital on fewer, higher-quality targets.
Global PE-backed software deal value in 2025 reached its highest level since 2022, but deal volume fell for the third consecutive year as buyers concentrated capital on fewer, larger targets. AI is central to that selectivity: nearly half of all tech deals now have an AI component, and one in five strategic dealmakers walked away from transactions in 2025 due to the anticipated impact of AI on the target's business. The Australia and New Zealand market reflected the global trend: volume fell while average deal size increased, consistent with the shift toward fewer, higher-quality transactions.
AI is not only reshaping how software is built, it is changing how software is discovered, purchased, and deployed. Agentic AI is replacing traditional user interfaces with autonomous workflows that select and orchestrate software tools without human intervention. Acquirers are conducting deeper technical due diligence on AI integration, evaluating the extent to which target products will be consumed by AI agents or displaced by them. In this environment, businesses that embed AI into mission-critical, compliance-heavy workflows and proprietary datasets with API-first architectures, structured data layers, and machine-readable outputs are better positioned. Those reliant on manual user workflows where AI narrows the functionality gap by replacing traditional SaaS interfaces are likely to face structural headwinds.
Acquirers are increasingly rewarding depth of domain expertise over breadth of functionality. Vertical software businesses with deep sector knowledge, proprietary datasets, and embedded compliance workflows are commanding premium multiples even at relatively modest scale. Horizontal SaaS businesses face a tougher environment as AI compresses the functionality gap between point solutions and platform alternatives. This dynamic is driving consolidation as PE sponsors and platform acquirers build category-specific groups through targeted M&A, and is visible in verticals such as healthcare IT, construction technology, government software, and logistics.
In ANZ, the proportion of cross-border software M&A transactions increased from 63% in 2024 to 76% in 2025. Most overseas buyers of ANZ software in the last three years originated from North America (US) and Europe (UK). Inbound interest from international strategic and sponsor buyers remains strong, with vertical software (e.g. TPG's A$651m acquisition of Infomedia); strategic, capability-led acquisitions (e.g. PAR Technology's acquisition of Task Software); and AI-adjacent assets (e.g. Canva's acquisition of Simtheory) a clear priority.
Private equity remains active, supported by substantial dry powder and improved financing conditions for high-quality, cash-generative assets. Financial sponsors are focusing on profitable businesses where operational AI adoption can drive EBITDA expansion post-acquisition, while maintaining discipline where AI disruption risk is elevated.
Private market valuations remain more resilient than public markets, creating a sustained arbitrage window for take-private transactions, particularly in the sub-A$200m market cap range, where ASX-listed software companies trade at materially lower revenue multiples relative to large-cap listed peers. For many small-cap listed companies, depressed share prices, and by extension limited access to capital, are continuing to constrain the ability to pursue organic or acquisition-led growth. Public-to-private opportunities persist where listed valuations lag private market comparables, but execution increasingly hinges on realistic pricing expectations and early regulatory engagement under Australia's new ACCC merger regime and heightened FIRB scrutiny.
“The valuation spread between top quartile and bottom quartile software businesses has never been wider, and the importance of positioning required to achieve a homerun (or even a fair value) outcome in this market should not be underestimated.”
Software valuations have been resetting since the low-interest rate environment of 2021. The median EV/Revenue multiple for Global Cloud Software (Bessemer Emerging Cloud Index) has compressed from approximately 14.0x in 2021 to mid-single digits.
Three key themes are currently reshaping valuations: (i) mispricing of quality between mission-critical vertical software and commoditised horizontal SaaS; (ii) seat compression as AI agents reduce human seats required; and (iii) proof over promise as investors demand evidence of AI value creation over narrative.
In a sector that rewards defensibility, understanding what is driving premium outcomes is central to how we advise clients on timing, positioning, and process design.
These valuation dynamics play out differently depending on buyer type. Understanding which acquirers are active, and what they are acquiring for, is central to process design.
For current valuation benchmarks, listed company comparables, and transaction multiples, see our latest Software Market Update.
The acquirer universe is broad, competitive, and increasingly international. Understanding which buyer types are most active, and what they are acquiring for, is critical to designing a process that maximises competitive tension. The following buyer types consistently pay premium valuations for ANZ-based software.
Industry-specific acquirers such as Caterpillar (RPMGlobal), PAR Technology (Task), and Renesas (Altium) all acquired ANZ software for domain expertise and global expansion. These acquirers are building local capability, expanding into adjacent product areas, and deploying proprietary technology across global customer networks. International strategic buyers typically deliver greater competitive tension and higher valuations.
Financial sponsors take a thematic approach, targeting high-growth segments and building scale through a combination of organic investment and bolt-on acquisitions. For example, PE-backed UK software consolidators Ideagen and The Access Group have made ANZ a consistent acquisition target, completing more than 15 transactions in the region in the five years to 2025. PE-backed platforms offer speed and certainty of execution, and often provide founders with a pathway to reinvestment alongside a partial exit.
ASX-listed software companies continue to be active acquirers, particularly those trading at premium valuations, which can move quickly and offer a combination of cash and scrip. WiseTech Global (ASX: WTC) has completed 55+ acquisitions including E2open. Xero (ASX: XRO) recently acquired Melio. Hansen Technologies (ASX: HSN) acquired powercloud and Digitalk Group.
We understand the operating metrics, SaaS benchmarks, and buyer expectations that drive software valuations. We advise clients on how to position for maximum value against the metrics acquirers use to underwrite transactions, meaning sharper pre-process positioning, better-prepared management teams, and stronger outcomes.
Direct relationships with the private equity firms, global platform companies, and strategic acquirers most active in software M&A. We know who is acquiring, what they value, and at what multiples. This intelligence directly informs process design and buyer targeting. Importantly, these are relationships built over decades and interactions over multiple transactions, rather than cold introductions made at the start of a process.
Latimer Partners is the exclusive Australian affiliate of Arma Partners, one of the world's leading technology M&A advisory firms. Arma has completed 274 M&A transactions since January 2016, 75% cross-border and US$200bn in aggregate deal value. Arma is consistently ranked #1 by volume in European Digital Economy M&A. In 2025, the firm completed 23 Technology M&A transactions above US$100m in deal value involving European targets.
Since January 2021, Latimer Partners has completed 37 technology transactions. 34% are cross-border. 50%+ are for repeat clients. Every engagement is 100% referenceable. We do not take mandates we cannot resource properly, and we are selective about the businesses we work with. Our clients consistently achieve premium outcomes relative to comparable transactions, and we are happy to provide references on request.
Software transactions advised by Latimer Partners. Note: transactions prior to end 2020 were advised on by Latimer Partners' Principals while at a previous firm. All values in Australian dollars unless otherwise stated.
Whether you're exploring a sale, acquiring, considering strategic options, or seeking growth capital, we'd welcome a confidential conversation.