2008 Key Highlights
The Software Industry’s most active buyers in 2008, based on the number (volume) of announced transactions, were Autodesk, Inc. and Oracle Corporation, each with 9 businesses purchased either directly or through a partner or affiliate.
The largest transaction announced in 2008 was CCC Information Services Inc. a portfolio business of Investcorp will acquire Mitchell International, Inc. a subsidiary of Aurora Capital Group for $1.40 billion.
Financially sponsored transactions represented 84 transactions which equates to 13 percent of the total volume and $10.25 billion of value or 25 percent of the market.
2008 vs. 2007 Key Trends
Total transaction volume in 2008 decreased by 12 percent over 2007 from 752 in 2007 to 665 in 2008.
Total transaction value in 2008 decreased by 51 percent over 2007, from $80.30 billion in 2007 to $39.66 billion in 2008.
The segment with largest decrease in value in 2008 over 2007 was Applications Software with a 59 percent decrease from $67.20 billion in 2007 to $27.57 billion in 2008.
2006-2008 Market Overview
Out of 2371 transactions tracked by Berkery, Noyes between 2006 and 2008 we determined the aggregate enterprise values paid for transactions, where the values of 835 were disclosed, to be $140.67 billion. Based on known enterprise values, using a logarithmic scale, we project values of 1536 undisclosed transactions to be $54.04 billion for a combined total of $194.70 billion over the past three years.
The largest transaction between 2006 and 2008 was SAP AG who acquired Business Objects S.A. for $6.15 billion.
Berkery, Noyes determined that the nearly one-third of companies sold between 2006 and 2008 had an enterprise values between $7 million to $33 million.
The most active buyer in the software industry by way of value between 2006 and 2008 was IBM who purchased certain assets or all of 21 properties for a combined total of $9.06 billion in enterprise value paid.