Business Software Selloff

Software Selloff Stalls M&A, IPOs

Analysis based on 11 articles · First reported Feb 11, 2026 · Last updated Feb 11, 2026

Sentiment

-60

Attention

Articles

Market Impact

Direct

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Market Impact

The broad selloff in software stocks is stalling deal-making and IPOs in the sector, as market volatility makes valuations unreliable and buyers cautious. This trend is leading to repricing of deals and postponed listings, impacting both public and private credit markets.

Software Financial services Private equity

Event Summary

A significant selloff in software stocks has led to a slowdown in mergers and acquisitions (M&A) and initial public offerings (IPOs) within the sector. The S&P 500 software and services index has experienced its worst three-month performance since May 2002, with the sector down about 25% from its October 28 record. This volatility makes it difficult for buyers and sellers to agree on valuations, with buyers fearing overpaying and sellers reluctant to transact at trough levels. The anxiety surrounding artificial intelligence's potential to reshape software business models is contributing to this fear-driven trading. Notable examples include Brex selling to Capital One at a significantly reduced valuation and OneStream being taken private by Hg Capital with limited gains for investors. Several firms, including Blackstone and Morgan Stanley, are assessing the risks, while others like Vista Equity Partners and Goldman Sachs suggest the market might be overreacting, seeing potential buying opportunities.

Key Actions

80 Brex sold to Capital One

70 OneStream went public

70 Hg Capital took private OneStream

60 Blackstone Inc.===Liftoff Mobile postponed planned listing

60 Visma may delay listing

50 Blackstone Inc. initiated risk assessment for AI disruption

Entities Involved

priv

Brex

Brex, a fintech software company, saw its valuation drop from over $12 billion in October to $5.15 billion when it was sold to Capital One, highlighting the impact of the market repricing.

Importance 60 Sentiment -70

priv

OneStream

OneStream, a financial software provider, went public near a $6 billion valuation, then was valued at $4.6 billion before being taken private by Hg Capital for $6.4 billion, showing limited gains for investors.

Importance 60 Sentiment -10

stock

Morgan Stanley

Morgan Stanley warned that the software selloff could impact private credit markets, where software companies represent a significant portion of the U.S. loan market.

Importance 50 Sentiment 0

stock

Capital One

Capital One acquired Brex for approximately $5.15 billion, a significantly lower valuation than Brex's peak funding round, indicating a potential buying opportunity in a down market.

Importance 50 Sentiment 10

priv

Hg Capital

Hg Capital took OneStream private for about $6.4 billion, barely clearing its IPO valuation, suggesting a cautious investment in a volatile market.

Importance 50 Sentiment 10

stock

Blackstone Inc.

Blackstone, a private equity firm, has initiated a risk assessment exercise across its portfolios to evaluate the impact of AI disruption.

Importance 50 Sentiment 0

index

S&P 500

The S&P 500 is up 1% while the software sector is down 25% from its October 28 record, indicating a divergence in performance.

Importance 40 Sentiment 1

+ 18 more entities View on Dashboard

Relationships

Vincenzo La Ruffa related ↔ Aquiline Capital Partners

Wally Cheng related ↔ Morgan Stanley

Michael Boyd related ↔ Canadian Imperial Bank of Commerce

Ron Eliasek related ↔ Jefferies

Blackstone Inc.===Liftoff Mobile related ↔ Blackstone Inc.

Jon Gray related ↔ Blackstone Inc.

Robert Smith, Baron Smith of Kelvin related ↔ Vista Equity Partners

David Solomon related ↔ Goldman Sachs

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