Broadband and Utility Software M&A: A Founder's Guide to the 2025-26 Market

A perfect storm of government funding, infrastructure modernisation, and technological transformation is reshaping the broadband and utility software sectors. In the United States, the Broadband Equity, Access, and Deployment (BEAD) programme is allocating over USD 42 billion to expand fibre networks into underserved communities. US telecom transactions surged to approximately USD 81 billion in 2024, with strong expectations for further activity in 2025. Simultaneously, the utility sector is investing billions in smart grid modernisation, advanced metering infrastructure, outage management, and billing systems to support the energy transition.

For founders who have built software companies serving internet service providers (ISPs), broadband operators, electric and gas utilities, water systems, or municipal infrastructure organisations, this convergence of capital and demand creates a generational M&A opportunity. Acquirers are competing for technology platforms that can help operators deploy, manage, and monetise next-generation networks and grid infrastructure.

This guide examines the current M&A landscape across both broadband and utility software, profiles the key buyers, benchmarks valuations, and provides practical guidance for founders considering a transaction.

Market Overview

Broadband and ISP Technology

The US broadband infrastructure market is undergoing its largest expansion in decades. The BEAD programme, part of the Infrastructure Investment and Jobs Act, represents the single largest federal investment in broadband connectivity. A remarkable 98% of fibre company executives surveyed by AlixPartners in 2024 indicated plans to engage with BEAD, underscoring the programme's centrality to the industry's growth trajectory.

The market structure is fragmented but consolidating rapidly. The 2024 AlixPartners Telecom Survey identified approximately 400 of the 1,900 small-scale fibre companies in the US as potential M&A candidates, and 93% of FiberCo executives anticipate aggressive consolidation in the sector over the next 15 months. Major transactions in 2024 included Verizon's planned acquisition of Frontier (to enhance its fibre and mobile offerings), T-Mobile's acquisitions of Metronet, Lumos, and Mint Mobile, and BCE's acquisition of Ziply Fiber. In Canada, the Rogers-Shaw merger highlights the cross-border nature of broadband consolidation.

The software layer supporting these operators includes billing and subscriber management, network provisioning and monitoring, customer relationship management, field service management, and operational support systems (OSS/BSS). Companies like Sonar Software, Visp.net, Calix (which provides cloud and software platforms for broadband service providers), and Zhone/DZS serve this market.

Utility Technology

The utility software market encompasses a broader set of technologies:

• Advanced Metering Infrastructure (AMI): The global AMI market was valued at approximately USD 21.4 billion in 2022 and is projected to reach USD 54.1 billion by 2031, growing at a CAGR of 12.4%. The North America smart meters market specifically is estimated at USD 6.25 billion in 2025, reaching USD 8.92 billion by 2031 (CAGR of 6.08%).
• Smart Grid Software: Grid edge intelligence, distributed energy resource management (DERMS), and grid analytics platforms are experiencing rapid growth as utilities modernise their infrastructure.
• SCADA and OT Systems: Supervisory Control and Data Acquisition systems remain critical for utility operations, with legacy vendors like Schneider Electric, Siemens, ABB, and GE competing alongside newer software-first entrants.
• Customer Information Systems (CIS) and Billing: Utility billing and customer management platforms from vendors like Oracle Utilities, SAP, Itineris, and Open International serve electric, gas, and water utilities.
• Outage Management Systems (OMS): With climate change increasing the frequency and severity of weather events, demand for sophisticated outage detection, management, and restoration software is growing rapidly.

Key players in utility technology include Itron (which recently acquired Elpis Squared to expand its grid edge intelligence portfolio), Landis+Gyr (a leading smart metering company), Aclara (now part of Hubbell), Sensus (owned by Xylem), and Honeywell.

Smart electricity meter penetration in the US is projected to exceed 94% by 2029, according to Berg Insight, with an installed base growing from 145.9 million in 2023 to 182.9 million by 2029. This ongoing deployment cycle creates sustained demand for both hardware and the software that manages, analyses, and monetises the data these meters produce.

M&A Activity and Deal Flow

Broadband M&A

The broadband sector experienced a wave of landmark transactions in 2024-25:

Verizon and Frontier: Verizon's planned acquisition of Frontier Communications aims to significantly expand its fibre footprint, combining Verizon's existing FiOS network with Frontier's extensive fibre assets across multiple states.

T-Mobile's Expansion: T-Mobile pursued an aggressive acquisition strategy, acquiring Metronet (a fibre-to-the-home provider), Lumos (a fibre provider in the mid-Atlantic), and completing its integration of Mint Mobile. These deals reflect T-Mobile's strategy to offer converged wireless and fixed broadband services.

AT&T and Lumen Fibre Assets: AT&T's acquisition of Lumen Technologies' fibre assets represents another major consolidation move, as incumbents seek to expand their fibre footprints to compete with cable and fibre-first challengers.

Consolidated Communications and Searchlight Capital: Consolidated's USD 3.1 billion deal with Searchlight Capital Partners signalled private equity's confidence in the fibre broadband thesis.

Smaller Fibre Consolidation: Numerous smaller transactions have occurred, including Shentel's acquisition of Horizon Telecom, Ziply Fiber's acquisition of Ptera, GI Partners' acquisition of Rise Broadband, and Antin Infrastructure's acquisition of Empire Access. These deals reflect the broader trend of PE-backed roll-ups targeting the hundreds of small fibre operators ripe for consolidation.

Utility Software M&A

Itron Acquires Elpis Squared: Itron, a leading provider of smart utility solutions, acquired Elpis Squared to expand its grid edge intelligence portfolio. This deal reflects Itron's strategy to move beyond hardware (smart meters) into higher-value software and analytics.

Hubbell Acquires Aclara: Hubbell's acquisition of Aclara Technologies consolidated the AMI market further, combining Aclara's metering technology with Hubbell's broader utility infrastructure portfolio.

Honeywell and Utility Software: Honeywell has continued to expand its utility software capabilities through both organic development and strategic acquisitions, particularly in grid modernisation and building automation.

Schneider Electric and AVEVA: While primarily focused on industrial software, Schneider Electric's acquisition of the remaining stake in AVEVA (an industrial and utility software company) for approximately GBP 9.5 billion signals the strategic value of operational technology software.

Municipal and Public Sector Software

The municipal segment -- water utilities, public power companies, and local government infrastructure -- represents a growing market for software vendors. Municipal software acquisitions have been driven by companies like Tyler Technologies (a leading provider of public sector software) and PE-backed platforms seeking to build vertical software businesses serving local government.

Valuation Benchmarks

Valuations across the broadband and utility software sector reflect the combination of government-funded growth, essential infrastructure characteristics, and recurring revenue models.

Metric	Range	Notes
Revenue multiple (broadband software SaaS)	6x-12x ARR	Higher for platforms with BEAD-related growth
Revenue multiple (utility software SaaS)	5x-10x ARR	Smart grid and analytics at the higher end
EBITDA multiple (broadband infrastructure)	12x-20x	PE-backed fibre assets at the higher end
EBITDA multiple (utility software)	15x-25x	Mission-critical software commands premium

Consolidated Communications' USD 3.1 billion valuation provides a benchmark for fibre infrastructure assets, though this includes both physical infrastructure and the subscriber base.

Itron trades publicly at approximately 6-8x forward revenue and 18-22x forward EBITDA, providing a useful reference for utility technology companies, though Itron's hardware revenue carries lower multiples than pure software businesses.

Landis+Gyr similarly trades at 5-7x forward revenue, with its software and services components commanding higher implied multiples than its hardware segments.

Key valuation drivers in this sector:

• Recurring software revenue: As with all software M&A, the proportion of recurring SaaS revenue versus one-time licence, hardware, or services revenue is the single largest factor in determining multiples.
• BEAD programme exposure: Companies positioned to benefit from BEAD-funded broadband expansion command premiums due to the visibility and duration of the government funding pipeline.
• Mission-critical positioning: Software that utilities cannot operate without (outage management, SCADA, billing systems) benefits from extremely high switching costs and near-zero churn.
• Regulatory and compliance functionality: Products that address utility regulatory requirements (rate cases, environmental compliance, safety reporting) benefit from compliance-driven demand.
• Data and analytics capabilities: The ability to turn metering and sensor data into actionable insights (grid optimisation, demand response, predictive maintenance) is increasingly valued.
• Municipal market access: Companies with established relationships in the municipal segment benefit from long sales cycles that, once won, create exceptionally sticky customer relationships.

Key Acquirer Profiles

Large Infrastructure Technology Companies

Itron, Landis+Gyr, Honeywell, Schneider Electric, and Siemens are all active acquirers of utility software companies. These firms seek to enhance their software and analytics capabilities to complement their hardware businesses, transitioning from equipment vendors to integrated technology platform providers.

Private Equity Firms

PE firms have been the most active buyers in broadband infrastructure, and are increasingly targeting the software layer as well. Firms active in the space include Searchlight Capital (Consolidated Communications), GI Partners (Rise Broadband), Antin Infrastructure (Empire Access), and others. The BEAD programme's multi-year funding timeline creates an attractive investment thesis for PE firms that can deploy capital now and benefit from government-funded growth over the next five to ten years.

Telecom Operators

Verizon, T-Mobile, AT&T, Lumen Technologies, and Bell Canada are all acquiring both infrastructure and technology to expand their broadband capabilities. While these operators primarily acquire networks and subscribers, they also value software platforms that can improve operational efficiency and customer experience.

Enterprise Software Companies

Oracle (Oracle Utilities), SAP, Salesforce (Salesforce Utilities), and Tyler Technologies have all built or acquired utility and municipal software businesses. These companies seek to leverage their existing enterprise relationships and cloud platforms to serve the utility and municipal markets.

Calix and Vertical SaaS Providers

Calix has built a significant cloud and software platform specifically for broadband service providers, and its model of providing software-as-a-service to ISPs illustrates the opportunity for vertical software companies in this space. Similar vertical SaaS providers serving utilities or municipal organisations are natural acquisition targets for larger platforms.

Consolidation Drivers

Government funding at scale: The BEAD programme's USD 42 billion allocation represents the single largest driver of broadband M&A activity. As funding flows to states and ultimately to broadband operators, the demand for software to deploy, manage, and operate new fibre networks will intensify.

Grid modernisation imperative: Ageing utility infrastructure, growing renewable energy penetration, electric vehicle adoption, and increasing climate-related disruptions are all driving utilities to invest in modern software platforms. This investment cycle is expected to span at least a decade.

ISP consolidation: With 400 small fibre companies identified as potential M&A candidates and 93% of industry executives expecting aggressive consolidation, the broadband software market is being reshaped by the needs of larger, more sophisticated operators that demand more capable technology platforms.

Energy transition technology needs: The transition to distributed energy resources (solar, battery storage, EVs) requires entirely new software capabilities for grid management, demand response, and customer engagement. Utilities and their technology providers are acquiring these capabilities through M&A.

Cybersecurity requirements: As utility and broadband infrastructure becomes more connected and software-dependent, cybersecurity requirements are intensifying. Companies with strong OT security capabilities are particularly attractive acquisition targets.

Electric vehicle infrastructure: The rapid growth of EV adoption is creating demand for utility software that can manage the impact on the grid, including load management, time-of-use pricing, and EV charging network integration. Companies with software solutions for EV-grid integration represent an emerging and fast-growing acquisition category.

Water utility modernisation: While less visible than electric grid modernisation, the water utility sector is experiencing its own technology transformation. Ageing infrastructure, water scarcity concerns, and regulatory requirements around water quality and conservation are driving investment in smart water metering, leak detection, and water management software. Companies serving the water utility market benefit from a customer base that is even more fragmented than electric utilities, creating significant roll-up opportunities.

Data monetisation: Broadband operators and utilities generate enormous volumes of operational and customer data. Software companies that can help these organisations analyse, package, and monetise their data assets are attracting premium valuations. This includes platforms for network analytics, customer segmentation, and predictive maintenance that transform raw operational data into actionable business intelligence.

Workforce management technology: Both broadband and utility operators face significant workforce challenges, including an ageing workforce, skilled labour shortages, and the need to manage field operations across geographically dispersed territories. Software that optimises workforce scheduling, enables remote diagnostics, and supports knowledge transfer is in high demand and represents an active acquisition category.

What This Means for Founders

If you have built a software company serving broadband operators, utilities, or municipal infrastructure organisations, the current market offers several strategic considerations:

BEAD creates a once-in-a-generation tailwind. If your product is relevant to BEAD-funded broadband deployments (provisioning, subscriber management, network monitoring, grant compliance), now is the time to capitalise on this growth. Acquirers will pay premiums for companies with demonstrated BEAD relevance and pipeline.

Mission-critical positioning is your strongest asset. If your software is embedded in utility operations (outage management, SCADA integration, billing), the switching costs create enormous defensive value. Document and quantify these switching costs for potential acquirers.

Hardware-to-software transitions attract premium buyers. If you are a software-first company competing in markets traditionally dominated by hardware vendors (metering, grid equipment), your software margins and scalability will command premiums from acquirers seeking to shift their revenue mix.

Municipal relationships are difficult to replicate. If you have established relationships with municipal utilities, public power companies, or local government infrastructure organisations, these long-cycle, high-retention customer relationships are exceptionally valuable to acquirers.

Consider the PE roll-up opportunity. Private equity firms are actively assembling broadband and utility software platforms through roll-up strategies. If you are a smaller company, a PE-backed platform may offer a compelling acquisition structure that includes continued management roles and equity participation in the combined entity.

The Outlook for Founders

The broadband and utility software sectors are experiencing a convergence of powerful tailwinds: historic government funding through the BEAD programme, accelerating grid modernisation, ISP consolidation, and the energy transition. For software companies serving these markets, the result is a robust M&A environment characterised by strategic and financial buyer competition, premium valuations for recurring revenue businesses, and a multi-year growth trajectory that acquirers are eager to participate in.

Valuations reflect the mission-critical nature of these businesses, with revenue multiples of 5x to 12x ARR and EBITDA multiples of 12x to 25x for well-positioned companies. The key to maximising value lies in demonstrating recurring software revenue, BEAD or regulatory relevance, mission-critical operational positioning, and strong customer retention.

The current window of opportunity, driven by unprecedented government investment and infrastructure modernisation, may not persist indefinitely. BEAD funds will be deployed over a defined timeline, and the most aggressive phase of ISP consolidation will eventually stabilise. Founders who understand the landscape and act strategically during this period of maximum buyer activity will be best positioned to achieve exceptional outcomes.

The infrastructure sectors you serve are undergoing generational transformations: from copper to fibre, from analogue to smart grid, from centralised to distributed energy. The software companies that enable these transformations occupy a privileged position in the technology ecosystem, and the M&A market is pricing that privilege accordingly. For founders ready to explore their options, the convergence of government capital, infrastructure demand, and acquirer appetite creates an environment that may not be replicated for decades.