SEG-SEG快照：2011年第2季度SaaS并购更新（英）-2021.7-41页_2mb

SEG 2Q21 SaaS M&A Summary

Core Content

This report provides an overview of the SaaS M&A market in the second quarter of 2021, highlighting trends, deal volume, and notable transactions. It is prepared by Software Equity Group (SEG), a leading advisory firm specializing in M&A for B2B software companies.

Main Points

Market Trends

• Deal Volume: In 2Q21, there were 395 SaaS deals, continuing the trend of record deal volume for 2021.
• EV/Revenue Multiple: The median EV/TTM revenue multiple reached a record 6.7x, driven by increased demand for high-performing SaaS assets.
• Vertical Focus: Healthcare, Real Estate, and Education were the most active verticals for SaaS M&A in 2Q21.
• Private Equity Activity: Private equity accounted for nearly 60% of SaaS M&A deals in 2Q21, indicating a strong interest in the sector.

Capital Gains Tax Impact

• SEG expects deal volume to remain robust in the second half of 2021 due to potential increases in capital gains taxes.

Historical Context

• The aggregate software industry M&A volume has grown steadily over the past four years, with 769 transactions in 2Q21.
• This represents the strongest first half deal volume on record.

Key Information

Deal Volume by Quarter

• Q1: 360 transactions
• Q2: 395 transactions
• Q3: 405 transactions
• Q4: 425 transactions (record)

Deal Volume by Month

• Monthly M&A activity has been on an upward trend since February, and is expected to remain strong in the second half of the year.

Top M&A Verticals

• Healthcare: Comprising nearly 1/3 of all vertical SaaS deals.
• Real Estate: A major vertical focus.
• Education: Also a significant vertical in the market.

Top Strategic Buyers

• Cisco: Acquired 6 SaaS companies.
• Autodesk: Acquired 5 SaaS companies.
• IBM: Acquired 5 SaaS companies.
• Lightspeed: Acquired 5 SaaS companies.
• Visma: Acquired 5 SaaS companies.
• VOLARIS: Acquired 6 SaaS companies.
• helpsystems: Acquired 6 SaaS companies.

Top Private Equity Investors

• Thoma Bravo: Acquired 14 SaaS companies.
• AKKR / Accel-KRR: Acquired 6 SaaS companies.
• Hg: Acquired 6 SaaS companies.
• Vista Equity Partners: Acquired 4 SaaS companies.
• STG: Acquired 4 SaaS companies.
• TA Associates: Acquired 4 SaaS companies.
• Clearaxe Capital: Acquired 4 SaaS companies.
• Francisco Partners: Acquired 4 SaaS companies.
• Stone Point Capital: Acquired 3 SaaS companies.
• SEP / Sumeru Equity Partners: Acquired 3 SaaS companies.

Notable Transactions

High Profile Deals (> $1B EV)

• Thoma Bravo acquired Proofpoint for $12.3B (Security / Horizontal)
• Thoma Bravo acquired QAD for $2B (ERP / Horizontal)
• TPG Capital acquired Boomi for $4B (Supply Chain / Horizontal)
• Symphony Technology Group acquired FireEye for $1.2B (Security / Horizontal)

Mid-Market Deals (> $250M EV)

• Rockwell Automation acquired Plex Systems for $2,220M (ERP / Manufacturing)
• Visa acquired Tink AB for $2,144.3M (Payments / Horizontal)
• Constant Contact acquired SharpSpring for $401.3M (Sales & Marketing / Horizontal)
• JFrog acquired Vdoo Connected Trust for $300M (Security / Horizontal)
• GlobalPayments acquired ZEGOPowered byPayLease for $830M (ERP / Real Estate)

Mid-Lower Market Deals (< $250M EV)

• Everbridge acquired x matters for $240M (Communications & Collaboration / Horizontal)
• Repay Holdings acquired Kontrol Payables for $8M (Payments / Horizontal)
• DigitalReef acquired multiple SaaS companies including Imagination Unwired, Holded Technologies, and Tiburtina.
• NVIDIA Corporation acquired DeepMap.
• Deloitte & Touche acquired CloudQuest (certain assets).
• Genstar Capital acquired 20-20 Technologies.
• Bain Capital Private Equity / Crosspoint Capital Partners acquired ExtraHop Networks for $900M.
• Clayton Dubilier & Rice / Kohlberg Kravis Roberts & Co. acquired Cloudera for $5,617.1M.

Summary

The SaaS M&A market in 2Q21 showed strong performance with 395 transactions, just below the record 425 in 4Q20. The median EV/Revenue multiple reached a record 6.7x, reflecting the high demand for SaaS companies. Private equity was a dominant force, accounting for nearly 60% of all SaaS M&A deals. Key verticals included Healthcare, Real Estate, and Education, while notable strategic buyers included Cisco, Autodesk, and IBM. Major deals included acquisitions by Thoma Bravo, TPG Capital, and Symphony Technology Group, showcasing the continued interest in SaaS assets across various industries.