Technology Industry Report - Q1 2025

Report Highlights

Elements Affecting the Dynamics and Outlook of the Technology Industry in Q1 2025 and Beyond

• Global Software & Technology M&A saw a lack of stability in Q1 of 2025 with most segments experiencing a moderate decline in EV/Revenue multiples.
• BI and Analytics saw strong headwinds towards the end of the quarter; the swift correction in EV/Revenue multiples was likely driven by a mix of high expectations for top performers and inflated valuations.
• Companies are prioritizing digital transformation initiatives, with a particular emphasis on customer experience, research and development, and supply chain transformation. This strategic focus aims to enhance competitiveness and operational resilience.
• The increasing volume of data from diverse sources and formats is creating new challenges for capital markets. Firms are addressing these complexities by investing in technology and digital transformation, replacing error-prone manual processes with scalable, data-driven solutions.
• A shift from traditional R&D-driven expansion to capital expenditure investments is reshaping the technology sector. Increased spending on computing capacity and infrastructure, including power assets for data centers, highlights a growing trend toward vertical integration and continues to drive M&A activity.

Learn More

Reach out to Dinan Capital Advisors Managing Director Will Downing for more report insights.