If it seems like software exits are on the rise, it’s because they are: Both M&A deals and IPOs are on pace for a big 2018.
Taking a closer look at SaaS deals through April, Software Equity Group shows healthcare is the most popular vertical target for acquisition. Marketing and HR were the most popular product category. Read on for SEG’s perspective and supporting charts:
- 2018 vertical SaaS M&A volume has outpaced 2017 each month YTD, with March and April posting considerably more deals (29 and 35, respectively) during 2018.
- On a vertical-specific basis, Healthcare SaaS M&A volume has led all other categories through the first four months of the year and has posted 21 transactions YTD. Real Estate SaaS and Financial Services SaaS accounted for the second and third most active categories YTD (13 and 10 transactions, respectively).
- When comparing monthly SaaS M&A by product category, CRM & Marketing, HR & Talent Management, and Analytics & Business Intelligence posted the highest deal volume through the first four months of 2018. CRM & Marketing M&A activity has been on a tear thus far in 2018, posting double-digit deal volume each month during 2018.
For more information on SaaS M&A, including the latest data on revenue multiples and sector activity, click here to download the full “Spring 2018 SaaS M&A Update” report from Software Equity Group.
Clare Christopher is editor of SandHill.com.