In 2024, we expanded our global portfolio with numerous strategic acquisitions across North America, South America, Europe, Australia, and Asia. Our presence in the Travel sector was strengthened with the acquisition of five new companies Dome, Hotetec, Traveltek, Alturos, and Lleego, while the Oil & Gas sector saw key additions with Ikon Science and Talus Technologies. We also broadened our reach in other core industries, including Financial Services with the acquisitions of GIFTSOFT and ITC Soluciones, and Automotive with Autoinfo. As we look ahead to 2025, we remain committed to further growth and expansion.
“This past year, Vela acquired companies in fifteen countries, and we completed some of our largest acquisitions to date. With the team in place, I’m looking forward to an even better 2025.”
Dan Baum Vela Chief Investment Officer
Life at Vela & Leadership Development Initiatives
Life at Vela & Leadership Development Initiatives Throughout the year, we hosted several leadership summits across the globe, including sessions in Mallorca, Brisbane, Toronto, Calgary, and Brazil.
These summits provided a platform for leaders to dive into specific topics like organic growth and M&A, share best practices, and explore innovative ways to drive long-term value creation. As Vela has grown, many of our operators have advanced into senior portfolio management roles, transitioning from leadership positions at acquired companies to overseeing multiple businesses and expanding their portfolios through M&A. Vela offers tremendous opportunity to explore new roles and get exposure to different parts of the business.
Market Updates and Key Trends
Slow IPO Market → More M&A Targets: With the tech IPO market remaining weak, investors are increasingly turning to M&A exits instead of public listings, leading to more software firms becoming available for acquisition. In this environment, cash buyers provide an attractive option for investors seeking liquidity.
Private Equity Exits & Portfolio Rebalancing → More Deal Flow: Private equity and roll-up firms that acquired software companies at high valuations in 2020-2021 are now seeking exits, driving increased deal flow. Higher financing costs are also forcing some of those investors to sell.
Software Spending Rebound: Software spending is projected to grow 14% to $1.2 trillion in 2025, up from 12% in 2024, increasing the demand for innovative solutions.
Looking Ahead to 2025
As we enter Constellation’s 30th year of acquiring technology companies, Vela remains committed to being an attractive and permanent home for the businesses we acquire. In 2025, we will continue to actively acquire enterprise software companies in our markets, while staying true to the principles that have driven our success over the past three decades.
For more information about Vela Software or if you are considering exploring a sale or future opportunities, we would love to connect.
