DFIN’s ongoing strategic transformation into a software solutions company remained on track in the third quarter, with record software solutions net sales of $73.2 million, a year-over-year increase of 5.3%, or 6.8% on an organic basis. This accounted for 40.7% of total net sales, up from 36.8% in the third quarter of 2022.
These results illustrate that DFIN is where our customers need us to be. Our compliance solutions are helping them address new ESG disclosure proposals and the Financial Data Transparency Act, which calls for organizations to leverage existing reporting processes that adhere to fully searchable and machine-readable non-proprietary data formats.
In addition, companies pursuing a public offering are choosing DFIN. In the third quarter, although the IPO market has still not recovered lost ground, we supported several large deals including ARM and Instacart. Looking ahead, there's a solid list of companies in the pipeline that we believe are waiting for the late first quarter or second quarter of 2024 for a public offering, assuming favorable interest rates and economic activity, and a stable geopolitical situation.
And while it was a quiet quarter for M&A, as business normalizes, we are confident that DFIN will deliver our strong mix of high-profile M&As, IPOs, private equity, and de-SPACs.
Thanks to our customers for choosing DFIN and to our employees, the most customer-focused and innovative team in the business.