Q3 2015 KEY HIGHLIGHTS
- The largest transaction in Q3 2015 and year-to-date was TPG Capital and Leonard Green Capital Partners’ announced acquisition of Ellucian, which provides higher education software, services and analytics, for $3.5 billion.
- The most active market segment in Q3 2015 was Professional Training Services with 28 transactions.
- Strategic acquirers accounted for 75 percent of the industry’s volume, or 92 transactions, in Q3 2015.
Q3 2015 KEY TRENDS
- Total transaction volume in Q3 2015 increased by 34 percent over the Q2 2015, from 91 to 122. This was the industry’s peak for volume throughout the past seven quarters.
- Total transaction value in Q3 2015 rose by 45 percent over Q2 2015, from $4.7 billion to $6.8 billion.
MULTIPLES & VALUE TRENDS
- The median revenue multiple from 2014 through the 1st 3 Quarters of 2015 decreased by 17 percent, from 2.4x to 2.0x.
- The median EBITDA multiple from 2014 through the 1st 3 Quarters of 2015 declined by ten percent, from 11.5x to 10.3x.
TOP TEN DEALS THROUGH Q3 2015
The top ten deals by value have seen two new additions since our half year report. In addition to Ellucian, the other top ten deal in Q3 2015 was Premier, Inc.’s announced acquisition of CECity.com, Inc., a SaaS-based healthcare solutions provider that specializes in performance management, pay-for-value reporting and professional education.
These two transactions, with an aggregate value of $3.9 billion, represented 30 percent of transaction value in the 1st 3 Quarters of 2015 and 57 percent of Q3 2015 transaction value.