NEW YORK — January 4, 2021 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2020 mergers and acquisitions trend report for the Software Industry. The report analyzes M&A activity in the Software Industry during 2020 and compares it with data covering 2018 and 2019.
Total deal volume in 2020 decreased by six percent over 2019, from 2,418 to 2,263. On a half year basis, M&A activity gained 14 percent in 2nd Half 2020 over 1st Half 2020, from 1,058 to 1,205.
Total deal value in 2020 rose by 14 percent over 2019, from $176.49 billion to $200.89 billion. On a half year basis, M&A value nearly tripled in 2nd Half 2020 over 1st Half 2020, from $50.68 to $150.21 billion.
Consumer Software experienced the largest increase in volume with a 12 percent annual rise. The segment’s largest transaction in 2020 was Microsoft’s announced acquisition of ZeniMax Media, a video game publisher, for $7.5 billion.
The number of deals in the Business Software segment, which consists of software designed for general business practices and not specific industry markets, declined 14 percent from 2019 to 2020. Notable sector transactions during the past year included Twilio’s acquisition of Segment, a customer data platform, for $3.2 billion; Adobe’s acquisition of Workfront, a marketing workflow, project management, and digital asset management (DAM) provider, for $1.5 billion; and Coupa Software’s acquisition of LLamasoft, a provider of AI-powered supply chain design and planning software, for $1.44 billion.
Transaction activity in the Niche Software segment, which is targeted to specific vertical markets, decreased six percent in 2020. Notable segment transactions included Intercontinental Exchange’s acquisition of Ellie Mae, a cloud-based platform provider for the mortgage finance industry, for $11 billion; Thoma Bravo’s announced acquisition of RealPage, a property and real estate management software company, for $9.77 billion; and WellSky’s acquisition of CarePort Health, which bridges acute and post-acute EHR data and provides visibility into the patient journey for providers, physicians, payers, and ACOs, for $1.35 billion.
M&A activity in the Infrastructure Software segment fell 12 percent over the past year. High profile segment deals included AVEVA’s announced acquisition of OSIsoft, which offers real-time industrial operational data software and services, for $5.02 billion; and Insight Partners’ acquisition of Veeam Software, a cloud-focused backup and disaster recovery services provider, for $5 billion.
A copy of the SOFTWARE INDUSTRY M&A REPORT FOR FULL YEAR 2020 is available at the Berkery Noyes website.