Among many areas, we represent companies focused on Software-as-a-Service (SaaS) and cloud computing solutions that serve the infrastructure, business, consumer, and niche vertical markets. Technology enabled services, which use and implement the software for the client, have also become more prominent.

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Latest Trend Reports

1st Half 2018 Software Industry Trends

1st Half 2018 Key Highlights

  • The largest deal in 1st Half 2018 was private equity firm KKR’s announced acquisition of BMC Software, which offers cloud and IT management solutions to enterprises, for $8.5 billion. Of note, BMC was acquired in 2013 by a private investor group led by Bain Capital and Golden Gate Capital for $6.69 billion.
  • There were 253 financially sponsored transactions with an aggregate value of $31.23 billion, representing 24 percent of the total volume and 37 percent of the total value, respectively.
  • 1st Half 2018 Key Trends

  • Total transaction volume in 1st Half 2018 declined by three percent over 2nd Half 2017, from 1,084 to 1,056.
  • Total transaction value in 1st Half 2018 rose by 46 percent over 2nd Half 2017, from $57.88 billion to $84.43 billion.
  • The median revenue multiple shifted from 2.7x in 2nd Half 2017 to 2.5x in 1st Half 2018. The median EBITDA multiple moved downward during this timeframe, from 13.7x to 11.4x.
  • Both the Business and Infrastructure segments saw notable increases in volume during the half year period. Business volume gained 13 percent, from 201 to 228 transactions. Infrastructure volume rose 11 percent, from 143 to 159  transactions.
  • M&A Market Overview

    Berkery Noyes tracked 5,382 Software transactions between 2016 and 1st Half 2018, of which 1,099 disclosed financial terms, and calculated the aggregate transaction value to be $280.05 billion. Based on known transaction values, we project values of 4,283 undisclosed transactions to be $98.30 billion, totaling $378.35 billion worth of transactions tracked over the past two and a half years.

    1st Half
    2018
    Software

    Full Year 2017 Software Industry Trends

    2017 Key Highlights

  • The Infrastructure segment's largest transaction in 2017 was Thales SA's announced merger with Gemalto, a digital security company that offers mobile connectivity, payment technology, and data protection solutions, for $6.51 billion.
  • Cisco Systems was responsible for two of the industry's top ten largest acquisitions in 2017: AppDynamics, an application performance management and IT analytics company, for $3.9 billion; and Broadsoft, which offers software and services that enable telecommunications service providers to deliver hosted cloud-based unified communications to enterprise customers, for $1.87 billion.
  • There were 487 financially sponsored transactions with an aggregate value of $56.13 billion, representing 22 percent of the total volume and 42 percent of the total value, respectively.
  • 2017 Key Trends

  • Total transaction volume in 2017 increased by four percent over 2016, from 2,100 to 2,191.
  • Strategic volume in 2017 remained about constant over 2016, at 1,704. Private equity backed volume improved 22 percent during this timeframe, from 399 to 487.
  • Total transaction value in 2017 declined by 16 percent over 2016, from $159.32 billion to $133.64 billion.
  • The median revenue multiple decreased from 2.7x in 2016 to 2.3x in 2017. The median EBITDA multiple saw a slight uptick from 12.7x in 2016 to 13.3x in 2017.
  • M&A Market Overview

    Berkery Noyes tracked 6,360 Software transactions between 2015 and 2017, of which 1,385 disclosed financial terms, and calculated the aggregate value to be $391.92 billion. Based on known transaction values, we project values of 4,975 undisclosed transactions to be $114.90 billion, totaling $506.81 billion worth of transactions tracked over the past three years.

    Full Year
    2017
    Software

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