The most notable development in the quarter, however, was not the volume but the rotation between segments. Software transactions declined from 55 in Q1 to 40 in Q2, while IT services and consulting nearly doubled, from 24 to 47 transactions. Consulting companies alone accounted for 32% of total Nordic deal flow, up from 14% in the previous quarter. Vertical solutions meanwhile represented around two-thirds of software transactions.
Valuations in the public market continued to weaken. EV/Sales for Nordic SaaS now stands at 3.4x, down from 3.7x in Q1 and 4.9x a year ago. IT services and consulting companies are meanwhile trading at 6.2x EV/EBITDA.
Private Equity appetite remains strong. PE firms and PE-backed platforms accounted for 70% of SaaS transactions during the quarter.
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