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SEG Snapshot: 1Q19 SaaS M&A Update

By May 1, 2019Article, M&As, Reports

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.

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