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Trend Reports

2015 Mid Year

 
 

2015 l 1st Half l Trends Report l Software Industry

Monday, July 06, 2015

1ST HALF 2015 KEY HIGHLIGHTS

  • The largest transaction in 1st Half 2015 was Permira and CPP Investment Board's acquisition of Informatica Corp., a provider of enterprise data integration software and services, for $4.77 billion.
  • The most active strategic acquirer was Microsoft Corporation with seven transactions: BlueStripe Software, 6Wunderkinder, Datazen, LiveLoop, Sunrise Atelier, Inc, Revolution Analytics and Equivio.
  • There were 170 financially sponsored transactions with an aggregate value of $27.22 billion, representing 18 percent of the total volume and 42 percent of the total value, respectively.

1ST HALF 2015 KEY TRENDS

  • Total transaction volume in 1st Half 2015 increased by three percent over 2nd Half 2014, from 936 to 965.
  • Total transaction value in 1st Half 2015 fell by nine percent over 2nd Half 2014, from $60.92 billion to $55.65 billion.
  • The median revenue multiple declined from 3.0x in 2nd Half 2014 to 2.8x in 1st Half 2015. The median EBITDA multiple increased from 13.7x in 2nd Half 2014 to 20.7x in 1st Half 2015.
  • Transactions in 1st Half 2015 with enterprise values above $160 million received a median revenue multiple of 3.8x and median EBITDA multiple of 25.1x, whereas those in the $10-$20 million range had a median revenue multiple of 2.4x and median EBITDA multiple of 13.4x.

M&A Market Overview

Berkery Noyes tracked 4,449 Software transactions between 2013 and 1st Half 2015, of which 1,016 disclosed financial terms, and calculated the aggregate transaction value to be $196.26 billion. Based on known transaction values, we project values of 3,433 undisclosed transactions to be $67.82 billion, totaling $264.08 billion worth of transactions tracked over the past two and a half years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.5x revenue and 12.6x EBITDA.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment

Footnotes