Software M&A is heating up again as private equity dry powder collides with depressed SaaS (software as a service) multiples and AI-driven stack consolidation among hyperscalers. Public market valuations have compressed enough that strategic buyers and private equity (PE) rollup specialists are circling profitable, sticky enterprise software with recurring revenue and clear artificial intelligence angles.
To rank acquisition likelihood, the most important filters are market cap digestibility, recurring revenue quality, free cash flow, strategic AI assets, founder or leadership transitions, and a beaten-down stock that frames a deal premium as both achievable and rewarding for existing shareholders. Three names check enough boxes to merit serious takeout speculation in 2026. Here, we count down to the most likely target.
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