Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its First Quarter 2011 Software Industry M&A Report.
Berkery Noyes data show transaction totals in the Software space remaining fairly consistent across the period with aggregate deal value dropping a full 30% on a quarter-over-quarter basis.
Of note, seven of first quarter’s 10 largest transactions fell into the category of Niche Software, which includes companies in the healthcare, financial services, construction, and energy industries. In contrast, full-year 2010 was dominated by the infrastructure software segment, which collectively represented 43% of the transaction value for the year.
“No doubt this is a temporary pause for already in April we have seen two impressive software deals, Lawson and Apptis Holdings,” said Mary Jo Zandy, managing director, Berkery Noyes.
Within the Niche Software classification, healthcare that was most active segment, with Align Technology, Inc.’s purchase of Cadent Inc. for $190 million representing the largest deal in that space. Other large transactions included Harris Corporation’s acquisition of Carefx Corporation for $155 million and McKesson Corporation’s acquisition of System C Healthcare plc for $140 million.
KIT digital, Inc., a provider of online video management solutions, purchased four companies during the period–TXT Polymedia, KickApps, Kewego SA, and Kyte–making it the most active acquirer in the software industry for the first quarter.
A copy of the First Quarter 2011 Software Industry M&A Report is available at the Berkery Noyes website.