SaaS

SEG Snapshot: 1Q19 SaaS M&A Update

1Q19′s 277 SaaS M&A transactions mark another record quarter of deal volume, as the broader software M&A bull market continues to roar. ​​​​​Valuations remain robust (4.5x median EV/Revenue) and small to mid-sized companies (less than 100 employees) continue to make up the majority of acquisition targets.

The broader software industry M&A bull market trend continued through 1Q19. In particular, the SaaS M&A market boomed, reaching an all-time quarterly record of 277 transactions.

Key Observations: 1Q19 SaaS M&A

• The broader software industry M&A bull market trend continued through 1Q19. In particular, the SaaS M&A market boomed, reaching an all-time quarterly record of 277 transactions.

• SaaS valuations remained buoyant, with 12 of the past 13 quarters posting a revenue multiple above the nine-year median of 4.0x EV/Revenue. 1Q19’s revenue multiple of 4.5x EV/Revenue was well above this median as well.

• Private equity buyers continued to have a strong appetite for SaaS companies and comprised the majority of SaaS acquisitions in the market. High-level review of the following 1Q19 SaaS M&A report.

 

Click here to view the full SEG 1Q19 SaaS M&A snapshot.

Software Equity Group provides unparalleled M&A advisory services for emerging and established software companies.

Post Your Comment




Leave another comment.

In order to post a comment, you must complete the fields indicated above.

Post Your Comment Close

Thank you for your comment.

Thank you for submitting your comment, your opinion is an important part of SandHill.com

Your comment has been submitted for review and will be posted to this article as soon as it is approved.

Back to Article