Full Year 2022 Private Equity Industry Trends

2022 KEY HIGHLIGHTS

TIBCO Software Inc., a subsidiary of Vista Equity Partners and Elliott Management Corp., acquired Citrix Systems, Inc., a multinational cloud computing and virtualization company, which was the Information Industry’s largest sponsored transaction in 2022, for $16.62 billion.

Thoma Bravo was responsible for three of the Information Industry’s top ten highest value sponsored deals during the year with the acquisition of Anaplan, Inc., a business planning software company, for $9.80 billion; Coupa Software, a global technology platform for Business Spend Management, for $8.00 billion; and SailPoint, a technology company that provides identity management and Governance for Unstructured Data access, for $6.90 billion.

Nearly one-third of companies sold in 2022 received transaction values between $33 million to $245 million.

2022 KEY TRENDS

Total transaction volume in 2022 decreased by 19 percent over 2021, from 1,084 to 879.

Total transaction value in 2022 gained 7 percent over 2021, from $159.74 billion to $170.21 billion.

The median EBITDA multiple decreased from 22.3x in 2021 to 17.2x in 2022.

M&A MARKET OVERVIEW

Berkery Noyes tracked 2,844 private equity transactions in the Information Industry between 2020 and 2022 of which 316 disclosed financial terms, and calculated the aggregate value to be $327.48 billion. Based on known transaction values, we project values of 2,528 undisclosed transactions to be $93.62 billion, totaling $421.09 billion worth of transactions tracked over the past three years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 3.8x revenue and 18.2x EBITDA.

Out of 2,844 deals tracked by Berkery Noyes between 2020 and 2022, transactions valued at $160 million and above garnered a median enterprise value multiple of 5.4x revenue. In contrast, companies with transaction values between $10 million and $20 million captured a median enterprise value multiple of 1.4x revenue.