M&A in the Software Sector 2025: consolidation, platforms and mid-market opportunities

The M&A market in the software sector in Spain once again took center stage in mid-market activity in 2025. The new Albia IMAP M&A Software Report 2025 analyzes a year marked by European consolidation, the leading role of private equity and an increasingly selective environment.

A more strategic and less speculative market

After several years of strong growth, the technology sector has entered a more mature phase. Software mergers and acquisitions are no longer driven by speculative dynamics, but by clear strategic criteria.

In 2025, investors prioritized:

• SaaS models with recurring revenue
• Leadership positions in vertical niches
• Real international scalability
• Integration of AI and automation as structural competitive advantages

The focus has shifted toward solid companies with profitability and cash flow visibility, rather than business models overly dependent on projects.

European consolidation

The year was marked by new transactions among major European software players, reinforcing a clear trend: the creation of platforms with greater scale and geographic coverage.

The industrial rationale behind these transactions is evident:

• Increase product density
• Integrate complementary solutions
• Access new markets
• Strengthen vertical positioning

This dynamic will continue to be one of the key drivers of technology M&A in 2026.

The role of Private Equity in the technology sector

Private equity maintained a leading role, although with a more disciplined approach. Instead of launching multiple new platforms, many funds focused their activity on inorganic growth strategies built on already consolidated structures.

Software remains an attractive asset due to:

• High margins
• Scalable business models
• Natural internationalization
• Recurring cash flow generation

However, the market is now more demanding in terms of valuation and asset quality.

Most active verticals in Software M&A

The report identifies particularly strong momentum in several strategic segments within the tech ecosystem:

Compliance and RegTech

Driven by increasing regulation and traceability requirements.

Transport and logistics

With strong demand for digitalization, operational efficiency and network optimization.

HealthTech

Leveraging data, clinical platforms and hospital management solutions.

Technology services and consulting

With relevant transactions in integration, sector specialization and international expansion.

Software M&A outlook for 2026

Looking ahead to 2026, momentum is expected to remain particularly strong in the lower middle market, where a broad universe of specialized companies remains open to consolidation.

The combination of:

• Structural digitalization
• The need for greater business efficiency
• AI-driven transformation
• Sustained interest from private capital

points to an active environment for mergers and acquisitions in the technology sector.