Industry Insights Global Software Sector Update Late Spring 2022Global Software Sector Update | Late Spring 2022 Executive Summary Table of Contents Following six consecutive quarters of accelerating activity, with the number of deals and deal volumes reaching record levels in Q4 2021, Q1 2022 was a mixed quarter. Deal activity (number of deals) continued to accelerate and hit a quarterly record of 709 deals, but total deal value dropped Significant Decrease in Deal Value in Q1 2022 but Record Deal Volume 3 significantly relative to 2021. Underlying this was continued robust activity in mid-market (<$1bn) software M&A from both PE and strategic acquirers, but a sharp fall of around 50% (from $98bn to $47bn) in deal volume from large cap deals (>$1bn values). SPAC deal activity was also down significantly relative to 2021. The robust mid-market activity in Q1 2022 highlights the continued confidence in software as a growth sector and continued appetite from software-focused PE buyers. Software and SaaS 6 M&A Valuations Dynamics Software Deals Transactions to Note 8 Technology M&A Practice Tracked Public Market Software Universe Macro head-winds, including persis