1st Half 2020 Private Equity Industry Trends

1ST HALF 2020 KEY HIGHLIGHTS

Four of the Information Industry’s top five largest sponsored deals year-to-date occurred in the Infrastructure Software segment.

Along these lines were Insight Venture Partners’ acquisition of Veeam Software, a cloud-focused backup and disaster recovery services provider, for $5 billion as well as Armis, an enterprise IoT security company, for $1.1 billion; a Symphony Technology Group led consortium’s announced acquisition of Dell Technologies’ RSA Security business for $2.08 billion; and Advent International and Crosspoint Capital Partners’ announced acquisition of ForeScout Technologies, which develops device visibility, control, and cybersecurity solutions, for $1.72 billion.

1ST HALF 2020 KEY TRENDS

Total transaction volume in 1st Half 2020 decreased by 21 percent over 2nd Half 2019, from 486 to 382.

Total transaction value in 1st Half 2020 fell by 59 percent over 2nd Half 2019, from $59.43 billion to $24.53 billion. Of note, value rose 30 percent from 1st Half 2019 to 2nd Half 2019, which was its peak during the last 30 months.

The median revenue multiple declined from 3.6x in 2nd Half 2019 to 3.2x in 1st Half 2020, marking a return to its 1st Half 2019 level. The median EBITDA multiple moved upward from 14.4x in 2nd Half 2019 to 15.7x in 1st Half 2020.

M&A MARKET OVERVIEW

Berkery Noyes tracked 2,305 private equity transactions between 2018 and 1st Half 2020, of which 249 disclosed financial terms, and calculated the aggregate transaction value to be $151.54 billion. Based on known transaction values, we project values of 2,056 undisclosed transactions to be $68.25 billion, totaling $219.79 billion worth of transactions tracked over the past two and a half years.

Disclosed median revenue multiple for all segments combined in this report in the last 30 months were 3.0x revenue and 14.3x EBITDA.