M&A advisory for software development companies
PE roll-ups have remade the buyer landscape for dev shops over the last decade. Sponsors have assembled platforms out of regional dev shops, nearshore delivery centres and vertical-specialist boutiques, and consolidation has not slowed. Valuations are framed in EBITDA multiples, with the premium on vertical specialisation, longer-tenure clients and any revenue base that looks more retainer than project.
The dominant buyers are PE platforms running active roll-up strategies across dev shop and product engineering targets, alongside the large SI consolidators - Accenture, Capgemini, Cognizant, Deloitte, EPAM, Globant, Endava, Persistent, Wipro, Infosys, TCS and HCL - who acquire to add delivery capacity and vertical specialisation. Flow has direct access to the PE platforms and SI corp dev teams transacting in this segment, and we run processes that put both pools in competition.
Flow team has relevant sector experience and has worked with software development companies across custom application development shops, nearshore and offshore delivery operators, vertical-specialist boutiques, product engineering businesses and platform engineering firms.
"Software development" KPIs M&A buyers look at
Key metrics strategics and PE buyers look at when analayzing software development M&A targets
Utilisation
Realised bill rate
Billable hours
Project gross margin
EBITDA margin
Revenue per FTE
Recurring revenue share
Customer concentration
Client retention
Headcount
Bench rate
Pipeline coverage
Software development valuations in May 2026
Public software development comps trade at 1.2x EV/Revenue. Median revenue multiple across software development M&A deals was 1.2x in the last 12 months.
1.2x
Median EV/Revenue as of May 2026 for public software development companies
72x
Palantir is the highest valued public software development company based on EV/Revenue (excluding outliers)
1.2x
Median EV/Revenue across software development M&A deals in the last 12 months
3.0x
Median EV/Revenue across software development VC rounds in the last 12 months
Key recent software development M&A deals
$4.5B acquisition of Quest Global by Hillhouse Investment was the largest software development M&A transaction completed in the last year.
See all software development M&A deals| Logo | HQ | Description | Buyer | ||||
|---|---|---|---|---|---|---|---|
Feb-26 | Quest Global |  | Quest Global is a Singapore-headquartered engineering services provider supporting product design, manufacturing, and digital engineering for aerospace, automotive, and medical device industries. With delivery centers in India, the United States, and Europe, it serves clients like Rolls-Royce, GE Aviation, and Siemens through PLM software expertise and simulation tools. | Hillhouse Investment | $4.5B | - | |
Dec-25 | Encora |  | Encora is a Scottsdale-headquartered provider of digital engineering services, specializing in software product development, cloud migration, data analytics, and AI for enterprise clients. | Coforge | $2.4B | 3.9x | |
Aug-25 | Trace3 | | Trace3 is a Laguna Hills-based technology consultancy that guides enterprises through digital transformation with expertise in cybersecurity, cloud computing, data engineering, and IT operations. The firm assesses organizational health to deliver tailored strategies, enabling clients to adopt emerging technologies and maintain competitive advantages in dynamic markets. | Apollo Funds | $1.6B | - | |
Dec-25 | MGT | | MGT is an employee-owned consulting firm providing program management, technology integration, and strategic advisory services to public sector organizations. Headquartered in Blue Bell, Pennsylvania, it assists U.S. Department of Defense, Department of Homeland Security, and civilian agencies with IT modernization and cybersecurity implementations. MGT delivers enterprise solutions using platforms like Salesforce and Microsoft Azure for mission-critical operations. | Ares Management | $1.3B | 3.0x | |
Apr-26 | JPSB |  | JPSB Group is a global financial technology consultancy that provides IT advisory, business transformation, project management, data management, and operational support to asset managers, asset owners, sovereign wealth funds, and wealth managers. | Alpha Financial Markets Consulting | $839M | - | |
Feb-26 | Ayesa |  | Ayesa is a Seville-headquartered technology and engineering firm providing infrastructure design, digital transformation, and supervision services. Spun off from Sener in 2021, it employs 2,500 staff across Spain, UK, and Middle East, delivering projects like Adif rail systems and Saudi smart cities. Ayesa generates €300 million in revenue from transport, defense, and energy sectors. | Colliers International | $700M | 1.9x | |
Dec-25 | Coastal Cloud | | Coastal Cloud is a Salesforce-focused consultancy offering cloud implementation, customization, integration, and managed services to optimize enterprise platforms for sales, service, and operations. | Tata Consultancy Services | $700M | 5.3x | |
Apr-26 | Astreya | | Astreya is a global IT services company delivering talent outsourcing and infrastructure solutions. Headquartered in Santa Clara, California, it employs professionals across more than 30 countries to serve clients like Apple, Google, and Meta in digital transformation projects including data centers and managed services. | Cognizant | $600M | 1.1x | |
Oct-25 | Digital Value |  | Digital Value SpA is one of the main IT solutions and systems integrator of Italian market. Its service range from activities of design, development and sale of IT solutions and services for the digitalisation of large account clients operating in various industrial sectors such as telecommunications, transport, utilities, finance, public administration and others. | One Equity Partners | $549M | 0.6x | |
Dec-25 | Ayesa Digital | | Ayesa Digital is the digital transformation division of Ayesa, a Spanish global engineering and technology services company founded in 1966 in Seville. Ayesa employs over 13,000 people across 24 countries in Europe, the Americas, Africa, Asia, and Oceania. Ayesa Digital specializes in IT consulting, software development, cybersecurity, cloud services, and digital strategy for both public and private sector clients. | Kutxabank | $535M | 0.8x | |
Apr-26 | iC Consult |  | iC Consult is a Vienna-based specialist in identity and access management. It integrates solutions for IoT devices, customer data platforms, and API gateways to secure enterprise ecosystems. The firm deploys systems handling millions of authentications daily for clients in finance, healthcare, and public sectors. iC Consult combines biometric verification, single sign-on, and zero-trust architectures. | Bridgepoint Group | $500M | - | |
Mar-26 | Optimum Healthcare IT | | Optimum Healthcare IT is a consulting firm delivering IT solutions for U.S. healthcare providers and payers. The Jacksonville, Florida-headquartered company specializes in Epic implementations, revenue cycle management, and interoperability projects under FHIR standards. Optimum Healthcare IT supports hospitals, health systems, and physician groups with staff augmentation and managed services. With practices in clinical informatics and cybersecurity, it serves clients across 30 states. | Infosys | $465M | 1.7x | |
Jan-26 | Escode | | Escode is a provider of code escrow services, software verification, risk mitigation reviews, and third-party access assurance. | TDR Capital | $377M | 4.2x | |
Apr-26 | Mindsprint | | Mindsprint delivers enterprise technology services for digital transformation with AI, data analytics, and cloud systems. Offerings include application development, cybersecurity, process automation, and modernization of SAP and legacy infrastructure for sectors like manufacturing, healthcare, and retail. The firm supports supply chain visibility, smart manufacturing, and commerce platforms through consulting and implementation. | Wipro | $375M | 2.8x | |
Aug-25 | H | Harman (digital transformation solutions unit) | | - | Wipro | $375M | 1.2x |
Most active buyers of software development companies
Accenture, Evergreen Services Group and The 20 MSP are the most active acquirers of software development companies in the last three years.
See all software development acquirers| Logo | HQ | Description | Key acquisitions | ||
|---|---|---|---|---|---|
Accenture | | Accenture is a leading IT services firm that provides consulting, system integration, and business process outsourcing to enterprises around the world. Customers of Accenture come from a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture is the world's largest professional services company by headcount with around 800,000 employees in over 120 countries. | RANGR DataDechoMaryville Consulting Group+2 | 26 | |
Evergreen Services Group | | Evergreen Services Group is a private equity-backed holding company of managed IT service providers operating in the United States and Canada. It invests in managed service providers specializing in cybersecurity, cloud migration, and helpdesk support, with portfolio companies serving small and medium businesses. Headquartered in New Jersey, the group supports organic growth and acquisitions through shared services in sales, marketing, and operations. | Corporate NetworksLan Solutions CorpThe ITeam+2 | 17 | |
The 20 MSP | | The 20 MSP is a consultancy firm delivering managed service provider support, including business development, network infrastructure consulting, and operational scaling services. Headquartered in Michigan, it assists IT firms with cybersecurity implementations, cloud migrations to AWS and Azure, and vendor partnerships. The company targets small to mid-sized MSPs seeking growth in North American markets. | InData ConsultingiStreet SolutionsRed Level+2 | 11 | |
IT Solutions Consulting | | IT Solutions Consulting is a full-service IT firm specializing in managed services for small and medium companies. Based in Colorado, it handles cloud migrations, network security, and helpdesk operations using tools like VMware and Cisco Meraki. Serving growing businesses since 2003, the company ensures uptime through SOC monitoring centers. | Tech SuperpowersTechnology AssociatesCopperTree Solutions+2 | 9 | |
Net at Work | | Net at Work is a New York-headquartered IT services firm founded in 1996 that implements accounting software, CRM systems, custom applications, document management, and cybersecurity solutions. Partnerships with Sage Software, Microsoft, Citrix, and Cisco enable integrated deployments for midmarket clients in professional services, nonprofits, and distribution sectors. | OnPar TechnologiesBHE ConsultingNetwork Computer Solutions+2 | 6 | |
Presidio | | Presidio is a New York-headquartered IT solutions provider founded in 2003 offering managed services, cybersecurity, cloud infrastructure, networking, and collaboration technologies. The company partners with Cisco, Palo Alto Networks, VMware, and Microsoft to deliver digital transformation projects for enterprises across North America through regional solution centers. | Achieve 1ErgoTRANSACT TECHNOLOGY SOLUTIONS LTD+2 | 6 | |
Synechron | | Synechron is a New York-headquartered digital transformation consultancy founded in 2001. It serves capital markets, banking, insurance, and digital clients with 18,000 employees across 19 countries. Expertise spans AI implementations, blockchain platforms, cloud migrations, and regulatory tech for firms like Goldman Sachs and HSBC. | CalitiiRapDevWaivgen+2 | 6 | |
New Charter Technologies | | New Charter Technologies is a Chicago-based private equity-backed platform acquiring and scaling managed IT service providers for small and medium businesses nationwide. Formed in 2021, it integrates cybersecurity, cloud migration, and helpdesk services from partner firms like N3uron and CoreTech. The roll-up strategy emphasizes recurring revenue models and vendor-neutral solutions. | GraVocNetSource OneElement Technologies+2 | 6 | |
IBM | | Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM’s products, including Red Hat, watsonx, and mainframes, handle some of the world’s most important data workloads in areas like finance and retail. | TxtureCognitus ConsultingHakkoda+2 | 6 | |
Thrive | | Thrive Networks is an IT services provider delivering managed hosting, cloud solutions, and cybersecurity. Boston-headquartered, it supports mid-market businesses with data center operations and network management. | WorksightedSecured Network ServicesSafety Net+2 | 6 |
Founders and investors we've worked with
We've supported winning builders across software development and beyond.
TestSolutions
We acted as exclusive financial advisor to Swiss PE firm Patrimonium on its majority stake acquisition of TestSolutions, a Frankfurt-based software testing and IT services provider.
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MAILINGWORK
We acted as exclusive sell-side advisor to MAILINGWORK, a Chemnitz-based email marketing software platform, on its sale to French digital marketing leader Positive Group.
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Rebellion Pay
We acted as exclusive sell-side advisor to Rebellion Pay, Spain's leading Gen Z neobanking platform, on its sale to Turkish consumer fintech unicorn Papara.
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HAPPYCAR
We acted as exclusive sell-side advisor to HAPPYCAR, a Hamburg-based pan-European rental car comparison and booking platform, on its sale to Dutch online price comparison player EasyTerra.
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Resillion
We provided buy-side advice to a dominant TIC industry player on the carve-out and acquisition of Resillion (fka Eurofins Digital Testing), a Hasselt-based digital testing, cybersecurity and forensics provider.
See moreRecent M&A advisory track record
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