NEW YORK — October 3, 2022 — Berkery Noyes, an independent mid-market investment bank, today released its third quarter 2022 mergers and acquisitions trend report for the Software Industry. The report analyzes M&A activity during the first three quarters of 2022 and compares it with data covering 2021.
According to Berkery Noyes’ latest research, total transaction volume in the first three quarters of 2022 decreased by 14 percent over the first three quarters of 2021. Total transaction value increased by 35 percent during this timeframe, from $280.7 billion to $377.6 billion.
In terms of “Niche Software,” which is targeted to specific vertical industries, volume declined 15 percent year-to-date over the first three quarters of 2021. Notable segment deals during the third quarter included Roper Technologies’ announced acquisition of Frontline Education, a cloud-based software provider that offers a connected platform of administrative solutions for K-12 education, for $3.4 billion; and Cadence Design Systems’ acquisition of OpenEye Scientific Software, a provider of computational molecular modeling and simulation software, for $500 million.
The Business segment, which consists of software designed for general business practices and not specific vertical industries, saw volume decrease seven percent year-to-date over the first three quarters of 2021. Notable third quarter Business segment deals included Vista Equity Partners’ acquisition of Avalara, a provider of tax compliance automation for businesses, for $8.2 billion; and EQT AB’s announced acquisition of Billtrust, a B2B accounts receivable automation and integrated payments solution provider, for $1.5 billion.
Transaction volume in the Infrastructure segment fell 17 percent year-to-date over the first three quarters of 2021. Notable segments deals during the third quarter included OpenText’s announced acquisition of Micro Focus International, which helps enterprises manage core IT elements of their business, for $5.9 billion; and Thoma Bravo’s announced acquisition of Ping Identity, an identity security platform, for $2.7 billion.
A copy of the SOFTWARE INDUSTRY M&A REPORT FOR THIRD QUARTER 2022 is available at the Berkery Noyes website.