---
title: "The Most Acquisitive Acquihirers in Software"
description: "Discover which tech giants lead software acquisitions: ServiceNow (5), Alphabet (4) \u0026 Medallia (4) top the list. Data analysis of 560 US deals under $400M since 2020."
categories: ["exits"]
keywords: ["ServiceNow","Alphabet","Medallia","software acquisitions","M\u0026A market","venture capital","acquihire","tech giants","small acquisitions","startup liquidity"]
ai_summary: "Explore the leading tech acquirers in software M\u0026A, highlighting key players and market trends since 2020."
date: 2023-01-16
lastmod: 2026-07-23
canonical_url: https://www.tomtunguz.com/most-active-small-acquirers/
author: "Tomasz Tunguz"
---

["The Startup M&A Market Fell 94% Year over Year - But One Segment Thrives"](https://tomtunguz.com/ma-market-2022/), a post from last week, elicited the same question from many readers. 

Just who are the most active acquirers for smaller takeouts?

To answer the question. I reviewed the roughly 560 US software acquisitions under $400m since January 1, 2020.

!["Chart showing the most active software acquirers in 2020 by count"](https://res.cloudinary.com/dzawgnnlr/image/upload/v1673826129/wm4ciy57oqdx9pq6kuye.png)

ServiceNow tops the list with 5 acquisitions. Alphabet ingested 4 companies. So did Medallia. Most of the other top 25 buyers, including Splunk, Apple, & VMWare, closed the period with 3 M&A events, about one annually.

!["Chart showing the most active software acquirers of VC backed companies in 2022 by dollars"](https://res.cloudinary.com/dzawgnnlr/image/upload/wbozlrqzjq3htvhkdi2x.png)

Examining the data by dollars reveals Motorola spent $800m, more than double the average across this group. Alphabet bought $400m of startups & Apple $375m.

Recruiter.com prefers small acquisitions: 4 purchases during the period, totalling less than $12m in value.

!["chart showing the average value per employee of small software acquisitions in the US for venture backed startups"](https://res.cloudinary.com/dzawgnnlr/image/upload/cnsq93ojroqojm7ahgd9.png)

How does willingness to pay vary by acquirer? CrowdStrike, Alphabet, & Motorola have paid about $3m per employee, roughly twice the median.

|  Percentile | M&A Value per Employee, $m |
| --- | ---:|
| 25th | 0.7| 
| 50th | 1.4 | 
| 75th | 2.2 | 

The rule of thumb has hovered at $1m per person in the past. Perhaps inflation seeped into this market just as much as groceries & gas.

Despite the macroeconomic challenges, the M&A market has persisted at roughly constant pace.

453 distinct acquirers each spent $50m annually on smaller acquisitions over the last three years, providing on $10-20b of liquidity to founders, employees, & investors each year.

| Year | Number of Acquisitions | Average Value, $m | 
| ---- | ---: | ---: | 
| 2020 | 155 | 77 |
| 2021 | 280 | 83 | 
| 2022 | 124 | 78 | 

The acquihire / small value part of the acquisition market remains an essential component of Startupland's model. Small acquisitions provide liquidity, help incumbents staff new initiatives, & continue the forward progress for the ecosystem.