Q3 2018 Key Highlight

  • Strategic acquisitions represented 80 percent of the industry’s total volume and 72 percent of total value in Q3 2018, respectively.
  • The highest value sponsored transaction in Q3 2018 was the announced acquisition of Dun & Bradstreet by an investment consortium that includes Thomas H. Lee Partners and CC Capital, for $6.6 billion. Dun & Bradstreet provides commercial data, analytics, and insights for businesses.

Q3 2018 Key Trends

  • Total transaction volume in Q3 2018 declined by four percent over Q2 2018, from 1,147 to 1,194.
  • As for the industry’s horizontal markets on a year-over year basis, Online & Mobile volume rose by nine percent; Media & Marketing volume stayed about the same; and Software volume decreased by five percent.
  • Total transaction value in Q3 2018 fell by 21 percent over Q2 2018, from $110.8 billion to $88 billion. This followed a 78 percent rise in the preceding quarter.

Multiples & Value Trend

  • The median revenue multiple from 2017 through the 1st 3 Quarters of 2018 increased from 2.0x to 2.4x. The median EBITDA multiple during this timeframe moved upward slightly from 10.7x to 11.4x.

Top Ten Deals Through Q3 2018

  • The top ten deals by value have seen two new additions since our half year report, including one in the Software horizontal: Broadcom’s announced acquisition of CA Technologies, a provider of information technology (IT) management software and solutions, for $18.4 billion.
  • These two transactions, with an aggregate value of $25 billion, represented ten percent of transaction value in the 1st 3 Quarters of 2018 and 28 percent of Q3 2018 transaction value.