The level of M&A activity in Q3 2025 came as a surprise to many. 110 acquisitions were announced during the period. This is the largest quarterly volume on record.
More importantly, we had several blockbuster transactions, from Workday buying Sana Labs and Paradox to the acquisitions of Dayforce, Neogov, Cognigy, Heartland Payroll, and more. The fourth quarter, meanwhile, is off to a strong start, with Qualtrics acquiring Press Ganey, which itself had just acquired InMoment. As one CEO put it, “everyone is buying everyone!”
Indeed, the latest numbers show that WorkTech and HR tech M&A is experiencing a noticeable resurgence. After c. 3 years of relatively subdued activity and compression of valuation multiples, we are once again seeing certain acquisitions happening at double-digit ARR levels.
Whether this trend continues, remains to be seen. But Private Equity has $1.2 trillion of dry powder, while corporates face a rapidly-changing landscape. Both are powerful drivers of M&A.
In this report you will find:
- Where is the sector in the growth cycle
- M&A activity (number of deals and deal value)
- M&A trends for the sector, including the key drivers of M&A activity in WorkTech
- Notable transactions that reshaped the WorkTech landscape
- Investment activity (number of deals and deal value)
- Analysis by sector and funding stage
- Valuation and benchmarking for publicly traded companies
- M&A valuations for HR Tech and WorkTech businesses over time
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