Recurring revenue has gained increased attention in investor sentiment following the COVID pandemic. Despite the numerous claims regarding the valuation benefits accruing to companies with recurring revenue business models, there is virtually no academic research that attempts to confirm the significance of this relationship. This paper explores companies in the software industry that have been recently acquired and comparatively measures their reliance on recurring revenue relative to the acquisition premium paid. A multivariable regression is used and analyzed to quantify the impact of recurring revenue on deal premiums. Assessing the significance of this relationship has large implications for mergers and acquisitions that occur in the software industry.