Q3 2018 Key Highlights
- The largest transaction in Q3 2018 was Adobe’s announced acquisition of Marketo, a cloud platform for B2B marketing engagement, for $4.8 billion.
- There were 437 financially sponsored transactions in the 1st 3 Quarters of 2018 with an aggregate value of $41.2 billion, representing 20 percent of the total volume and 27 percent of the total value, respectively.
Q3 2018 Key Trends
- Total transaction volume in Q3 2018 increased by nine percent over Q2 2018, from 757 to 827.
- Total transaction value in Q3 2018 fell by 44 percent over Q2 2018, from $80.2 to $45 billion. However, overall value nearly tripled in Q2 2018. Aggregate value in Q2 2018 was driven by several major deals, such as Walmart’s acquisition of Flipkart for $16 billion.
Multiples & Value Trends
- The median revenue multiple from 2017 through the 1st 3 Quarters of 2018 improved by 25 percent, from 2.0x to 2.5x.
- The median EBITDA multiple from 2017 through the 1st 3 Quarters of 2018 remained almost constant at 11.4x.
Top Ten Deals Through Q3 2018
- The top ten deals by value have seen three new additions since our half year report, two of which were SaaS-based deals. In addition to the previously mentioned Marketo deal, State Street Corporation announced its acquisition of Charles River Systems, a provider of investment management front office tools and solutions, for $2.6 billion.
- These three transactions, with an aggregate value of $10.2 billion, represented seven percent of transaction value in the 1st 3 Quarters of 2018 and 23 percent of Q3 2018 transaction value.