The industry’s largest transaction in Q3 2018 and year-to-date was Broadcom’s announced acquisition of CA Technologies, a provider of information technology (IT) management software and solutions, for $18.4 billion.
There were 395 financially sponsored transactions in the 1st 3 Quarters of 2018 with an aggregate value of $40.2 billion, representing 24 percent of the total volume and 28 percent of the total value, respectively.
Q3 2018 Key Trends
Total transaction volume in Q3 2018 decreased by five percent over Q2 2018, from 572 to 545. This followed a 13 percent rise in Q2 2018.
Total transaction value in Q3 2018 rose by nine percent over Q2 2018, from $51.6 billion to $56.4 billion. Of note, this was the fifth consecutive quarterly increase in aggregate value.
Multiples & Value Trends
The median revenue multiple from 2017 through the 1st 3 Quarters of 2018 improved by 26 percent, from 2.3x to 2.9x.
The median EBITDA multiple from 2017 through the 1st 3 Quarters of 2018 declined by seven percent, from 13.3x to 12.4x.
Top Ten Deals Through Q3 2018
The top ten deals by value have seen four new additions since our half year report, including two that occurred in the Infrastructure segment. In addition to the previously mentioned CA Technologies deal, Cisco Systems acquired Duo Security for $2.4 billion.
These four transactions, with an aggregate value of $28.1 billion, represented 20 percent of transaction value in the 1st 3 Quarters of 2018 and 50 percent of Q3 2018 transaction value.