Software Equity Group (SEG) Releases 2025 State of Government Software Report

Drawing on SEG’s expertise in government vertical, the report highlights macroeconomic impacts, hurdles, trends, and the role of digital innovation.

ENCINITAS, CA, UNITED STATES, June 11, 2025 /EINPresswire.com/ -- Software Equity Group (SEG), a boutique M&A advisory firm for software companies, has released its 2025 State of Government Software Report.

Drawing on SEG’s expertise in the government software vertical, the report highlights key macroeconomic impacts, government-specific hurdles, software M&A trends, and the role of digital innovation in the sector.

In 2024, 139 software deals were completed in the government software sector. Private equity firms completed 61% of the total acquisitions in the government software sector in 2024, according to SEG analysis.

The most active buyers in the government software sector in 2023 and 2024 reflected a shared mission of modernizing public sector operations, enhancing efficiency, and addressing unique challenges through scalable, niche software solutions.

Key trends include:
• Legacy software upgrades: Government organizations are rapidly moving toward modern cloud-based SaaS solutions.
• Data and connectivity: Agencies are creating vast amounts of data from smart assets, sensors, and systems to drive predictive and prescriptive maintenance and control costs.
• Lower total cost of ownership: SaaS is lowering costs for government organizations and improving budget predictability.

The 60-page report also includes sector-specific breakouts, deal structures, and in-depth benchmarking data, including:
• Detailed market maps
• Insights into notable deals
• Industry tailwinds and headwinds
• An analysis of digital transformation in the sector

The 2025 State of Government Software Report is now available for free download at https://softwareequity.com/research/government-software-report.

About Software Equity Group (SEG)
SEG advises SaaS leaders who want to sell or seek investment. The SEG team works to drive demand, create leverage, and maximize optionality at each stage of the M&A process. SEG is also the producer of leading SaaS market reports, including the well-regarded quarterly SaaS M&A Report and the annual State of SaaS M&A: Buyer’s Perspectives Report.

Learn more and download research at softwareequity.com.

Lindsay Young
Software Equity Group
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