Q3 2023 Online & Mobile Industry Trends

Q3 2023 Key Highlights

Six of the industry’s top ten highest value deals year-to-date were completed by financial sponsors.

SaaS & Cloud was the industry’s most active segment in the 1st 3 Quarters of 2023, with 887 transactions.

There were 458 financially sponsored transactions in the 1st 3 Quarters of 2023 with an aggregate value of $61.21 billion, representing 22 percent of the total volume and 49 percent of the total value, respectively.

Q3 2023 Key Trends

Total transaction volume in the 1st 3 Quarters of 2023 declined by 18 percent over the 1st 3 Quarters of 2022, from 2,547 to 2,086.

Total transaction value in the 1st 3 Quarters of 2023 decreased by 62 percent over the 1st 3 Quarters of 2022, from $327.88 billion to $123.32 billion.

Multiples & Value Trends

The median revenue multiple on a year-over-year basis fell by 38 percent, from 2.9x to 1.8x.

The median EBITDA multiple on a year-over-year basis decreased by 18 percent, from 11.6x to 9.0x.

Top Ten Deals Through Q3 2023

Two of the three largest deals by value year-to-date occurred in Q3 2023: Cisco’s announced acquisition of Splunk for $29.9 billion, and New Relic’s announced acquisition by Francisco Partners and TPG for $6.5 billion, both cloud-based observability platforms.

These two transactions, with an aggregate value of $36.4 billion, represented 29.5 percent of transaction value in the 1st 3 Quarters of 2023.