1、London|Frankfurt|Stockholm|San FranciscoUPDATE WITH NEW COVER FROM INDESIGN1|16 Enterprise Software M&A Overview 2H 2023Enterprise Software M&A sees mid-market comebackThe M&A activity ahead may not all be eye-catching megadeals as in 2021,but rather a healthier level of mid-market deals as companie

2、s pursue their strategic growth agendas.These smaller deals can also drive transformation and growth.While cash-rich corporates remain well positioned to make larger moves,we see mid-market transactions dominating the market in coming months as CEOs use a program of both strategic acquisitions and s

3、elect divestitures to transform their portfolios for the future.We began 2023 with a cautious M&A outlook.The global economy was clouded by recession fears and rising interest rates as central bankers sought to tame record inflation in many regions.However,despite fewer mega deals,we are seeing acti

4、vity pick up at much higher levels than pre-pandemic 2019 levels which bodes well for the rest of the year.The past year has been eventful for tech markets.The macro economic environment underwent an important correction mid-2022 following the heightening of geopolitical tensions,coupled with post-p

5、andemic inflationary and central bank interest rate hikes.Tech growth slowed down,staff cuts made headlines and the M&A landscape saw dramatically fewer mega deals.Now,inflation is decelerating,interest rates may be near their apex,confidence in the market is returning slowly and many are buzzing ab

6、out new technologies such as generative AI.We are seeing renewed momentum from digitalisation to decarbonisation to doubling down on value creation create dynamic market conditions that are creating transformation opportunities and a more buoyant M&A market in 2023.Source:PwC,20232|16 Enterprise Sof