SEG-2020年第二季SaaS并购报告（英文）-2020.8-35页_2mb

SEG 2Q20 SaaS M&A Summary

Core Content

This report provides an overview of the SaaS M&A market activity during the second quarter of 2020, highlighting key trends, deal volume, valuation multiples, and notable transactions. It also includes information about SEG's role as a leading M&A advisory firm and its insights into the software industry.

Main Points

Market Trends

• Overall Impact of COVID-19: The software M&A market saw a decline due to the pandemic, with overall deal volume dropping nearly 20% quarter-over-quarter (QOQ).
• SaaS Decline: SaaS M&A deal volume decreased by 30% QOQ, reaching 207 deals in 2Q20, which is a significant drop from 296 deals in 1Q20.
• Recovery Signs: Deal volume hit a low in May but showed signs of recovery in June, with expectations for continued rebound in July and August.
• Valuation Multiples: SaaS M&A valuation multiples remained stable at 4.7x EV/Revenue, lagging behind public market multiples and not yet showing the impact of the pandemic.
• Buyer Activity: Strategic and private equity driven deals were equally represented in 2Q20, with notable buyers including VMware, Volaris Group, MRI Software, Microsoft, and Thoma Bravo.

Deal Volume by Category

• Monthly Trends: SaaS M&A activity hit a low in May and began to recover in June, indicating a potential rebound in the coming months.
• Product Categories: Sales & Marketing was the most active product category in M&A transactions over the last three years, with 565 transactions.
• Vertical Markets: Healthcare Software was the most active vertical, with 260 transactions over the last three years, which is 68% more than the next most active vertical, Real Estate, with 155 deals.

Deal Volume by Company Size

• SMB Focus: Most SaaS M&A targets were small and medium-sized businesses (SMBs) with less than 100 employees.
• Company Age: Nearly 45.4% of SaaS sellers were founded within the last 10 years, indicating a trend of newer companies being acquired.

Buyer Composition

• Buyer Split: Private equity and strategic buyers made up nearly a 50/50 split in SaaS M&A deals in 2Q20.
• Publicly Traded Buyers: Publicly traded strategic buyers experienced a significant dip in deal activity, decreasing by nearly 5.6 percentage points QOQ.

Key Information

• SEG Overview: SEG is a leading M&A advisory firm with over 25 years of experience, providing services to both emerging and established B2B software companies.
• Buyer Network: SEG has a broad network of buyers and investors, which helps in creating competitive markets for its clients.
• Market Research: SEG continuously tracks M&A transactions and buyer appetite to offer insights and support to its clients.

Notable Transactions

Appendix

The appendix includes detailed lists of SaaS M&A transactions from 2Q20, with enterprise values and additional seller and buyer information. These lists provide a comprehensive view of the market activity, including the most active buyers and sellers, as well as deal volume by product category and vertical market.