John Norton
All reports

National Sector Report · H1 2026

U.S. Software M&A — incumbents are buying capability, not building it

72 lower-middle-market software and IT transactions closed in the first half of 2026, heavily weighted to California and New York. Strategic acquirers took 92% of the deals, absorbing AI, cybersecurity, vertical-SaaS and data businesses as bolt-ons rather than building the capability in-house.

72
Deals captured
92%
Strategic buyers
6
Financial / PE
21
States active

Market read

Strategics dominate; sponsors show up selectively

U.S. software and IT M&A stayed highly active in H1 2026. Most transactions are undisclosed bolt-ons, with financial sponsors appearing selectively on larger platforms. The volume of AI-native targets underscores how quickly incumbents are acquiring capability rather than building it.

Buyers were unusually diffuse — TechWise Group (2) was the only repeat acquirer in the period. For founders, that means the right buyer is rarely obvious in advance, which is exactly the case for running a process rather than taking the first call.

Top states by deal count

  • California
    25
  • New York
    9
  • Texas
    9
  • Illinois
    3
  • Florida
    3
  • Missouri
    3
  • Maryland
    2

Transaction detail

H1 2026 software transactions (72)

AnnouncedTargetLocationAcquirerBuyer typeValue
Jun 2026MuraNyack, NYServiceTradeStrategicUndisclosed
Jun 2026UplimitSan Francisco, CAHandshakeStrategicUndisclosed
Jun 2026Link LabsAnnapolis, MDGeotabStrategicUndisclosed
Jun 2026WarmlyHouston, TXHubSpotStrategicUndisclosed
Jun 2026PinkfishSan Francisco, CAGenesysStrategicUndisclosed
Jun 2026HelloMDSan Francisco, CATilrayStrategicUndisclosed
Jun 2026VigilAigentLas Vegas, NVIntrusionStrategicUndisclosed
Jun 2026Change MachineBrooklyn, NYProsperity NowStrategicUndisclosed
Jun 2026Sureview SystemsTampa, FLVolaris GroupStrategicUndisclosed
Jun 2026Timus NetworksCambridge, MACyberFOXStrategicUndisclosed
Jun 2026Topaz LabsDallas, TXAdobeStrategicUndisclosed
Jun 2026CoheroSan Diego, CAComputer Information SystemsStrategicUndisclosed
Jun 2026EarnBetterLafayette, CAEarnInStrategicUndisclosed
Jun 2026CedarNew York, NYBeZero CarbonStrategicUndisclosed
Jun 2026Scan-OpticsManchester, CTDaidaStrategicUndisclosed
Jun 2026SAMAustin, TXNew Mountain CapitalFinancial / PEUndisclosed
Jun 2026Planet TogetherEncinitas, CACAI SoftwareStrategicUndisclosed
Jun 2026UXB HoldingsSan Francisco, CARVNA TechnologiesStrategicUndisclosed
Jun 2026GPTZeroNew York, NYSuperhuman (formerly Grammarly)StrategicUndisclosed
Jun 2026New Frontier TechnologiesOverland Park, KSGrayMatter SystemsStrategicUndisclosed
Jun 2026NHanced SemiconductorsBatavia, ILQuantum ComputingStrategic$73M
Jun 2026EmbraceAustin, TXSyndioStrategicUndisclosed
Jun 2026HeartSciences (Heart Test Laboratories, Inc.)Southlake, TXFortitude MiningStrategicUndisclosed
Jun 2026Zuccaro Technical ConsultingArlington, VAROCStrategic$3M
Jun 2026ContinueSan Francisco, CAAnysphere (Cursor)StrategicUndisclosed
Jun 2026Entendre FinanceNew York, NYMoonPayStrategicUndisclosed
Jun 2026Marstone Inc.New York, NYFusionIQStrategicUndisclosed
Jun 2026KMK Consulting Inc.Morristown, NJTredenceStrategicUndisclosed
Jun 2026SurePath AIDenver, COF5StrategicUndisclosed
Jun 2026LegaBrooklyn, NYBARBRI GlobalStrategicUndisclosed
Jun 2026Essential AISan Francisco, CANVIDIAStrategicUndisclosed
Jun 2026Virtuosi LeagueSan Francisco, CAHyve GroupStrategicUndisclosed
Jun 2026Motivation TechnologiesSt Louis, MOIntegrityStrategicUndisclosed
Jun 2026NextGen Invent CorporationNew York, NYStraiveStrategicUndisclosed
Jun 2026CloseSimpleMinneapolis, MNCertifIDStrategicUndisclosed
Jun 2026PictorusOakland, CARenesas Electronics CorporationStrategicUndisclosed
Jun 2026LokentraFrisco, TXBuzzClanStrategicUndisclosed
Jun 2026Lumen21Orange, CATechWise GroupStrategicUndisclosed
Jun 2026DeductiveMountain View, CAElasticStrategic$85M
Jun 2026L&L ConsultingChicago, ILTechWise GroupStrategicUndisclosed
Jun 2026NetRiseAustin, TXDragosStrategicUndisclosed
Jun 2026MedalliaSan Francisco, CABlackstone GroupFinancial / PEUndisclosed
Jun 2026Mach MachinesBlue Creek, OHPemamekStrategicUndisclosed
Jun 2026KalderosChicago, ILModel NStrategicUndisclosed
Jun 2026AltairMinneapolis, MNCentri Business ConsultingStrategicUndisclosed
Jun 2026EigenQColumbia, MDSilicon Valley AcquisitionStrategicUndisclosed
Jun 2026CommitDallas, TXEmbarkStrategicUndisclosed
Jun 2026BMC HelixSanta Clara, CAMontaguFinancial / PEUndisclosed
Jun 2026IndX SoftwareAliso Viejo, CAAccentureStrategicUndisclosed
Jun 2026AnetacLos Altos, CAQuest SoftwareStrategicUndisclosed
Jun 2026MixhaloSan Francisco, CADeepLStrategicUndisclosed
Jun 2026BlueshiftSan Francisco, CABlueConicStrategicUndisclosed
Jun 2026BonvagoMiami, FLTrip ConciergeStrategicUndisclosed
Jun 2026Fortium PartnersPlano, TXZRG PartnersStrategicUndisclosed
Jun 2026AtmoSan Francisco, CAVaisala XweatherStrategic$70M
Jun 2026CaseWorthySalt Lake City, UTRubicon Technology PartnersFinancial / PEUndisclosed
Jun 2026Stonewall SolutionsMarlborough, MAxFactStrategicUndisclosed
Jun 2026Code SoftwareClearwater, FLTollringStrategicUndisclosed
Jun 2026ElektrikOrem, UTLead Edge CapitalFinancial / PEUndisclosed
Jun 2026Hello CitizenSt Louis, MOFastDemocracyStrategicUndisclosed
Jun 2026Lab4USan Francisco, CABriteboundStrategicUndisclosed
Jun 2026Millennium Accounting SolutionsSan Jose, CANet at WorkStrategicUndisclosed
Jun 2026AudioSourceRELittlerock, CASyntiantStrategicUndisclosed
Jun 2026Centroid SystemsTroy, MIGridiron CapitalFinancial / PEUndisclosed
Jun 2026AponoNew York, NY1PasswordStrategicUndisclosed
Jun 2026RevyseBend, ORGet CoveredStrategicUndisclosed
Jun 2026MEXTSanta Clara, CAAMDStrategicUndisclosed
Jun 2026SciSummaryColumbus, OHArisoStrategicUndisclosed
Jun 2026GavelLos Angeles, CARelativityStrategicUndisclosed
Jun 2026FewsatsWilmington, DESapiomStrategicUndisclosed
Jun 2026CareSeedKansas City, MOSagilityStrategic$18M
Jun 2026POSDATA GroupGig Harbor, WALevataStrategicUndisclosed

Source: Rogo deal screening — target HQ in the United States, H1 2026 (January–June 2026), transactions ≤ $100M enterprise value (undisclosed retained). Reflects deals captured by the screen, a representative sample of a larger national market, curated to on-theme targets. Buyer type reflects the acquirer entity; many strategic acquirers are PE-backed platforms executing add-ons.

Own a software or IT business?

Strategic buyers are paying for capability right now — and the best bidder is often one you haven't heard of. Let's talk about what yours would attract.

Start a conversation