Australian small-cap software companies have been severely oversold and as a result have been swarmed on in a flurry of M&A deals during October, with few signs that these deals will slow down with more likely in the pipeline.

“National and international software firms, as well as private equity firms, have taken advantage of these low valuations, offering huge premiums in an attempt to secure control of the companies in question,” says Peter Milios, a research analyst for Corporate Connect Research.