Q3 2012 KEY HIGHLIGHTS
- The most active Software Industry acquirers in Q3 2012 were Google Inc. and EMC Corporation with four transactions each. Through its subsidiary VMware Inc., EMC Corporation acquired Log Insight from Pattern Insight Inc., Nicira, Inc. and DynamicOps, Inc.
- The largest transaction in Q3 2012 was Roper Industries, Inc.’s acquisition of Sunquest Information Systems, Inc., a portfolio company of Vista Equity Partners, for $1.4 billion.
Q3 2012 KEY TRENDS
- Total transaction volume in Q3 2012 decreased by 11 percent over Q2 2012, from 411 to 364.
- Total transaction value in Q3 2012 fell by 35 percent over Q2 2012, from $21.3 billion to $13.9 billion.
MULTIPLES & VALUE TRENDS
- The median revenue multiple in Q3 2012 increased by 14 percent over Q2 2012, from 2.1x to 2.4x.
- The median EBITDA multiple in Q3 2012 decreased by 15 percent over Q2 2012, from 11.7x to 9.9x.
- Thoma Bravo, LLC’s announced acquisition of Deltek, Inc. represented a 3.0x revenue multiple and 18.2x EBITDA multiple.
TOP TEN DEALS THROUGH Q3 2012
The top ten deals by value have seen four new additions since our half year report: Roper Industries, Inc.’s acquisition of Sunquest Information Systems, Inc., VMware Inc.’s announced acquisition of Nicira, Inc., One Equity Partners’ acquisition of M*Modal, and Thoma Bravo, LLC’s announced acquisition of Deltek, Inc.
These four transactions, with an aggregate value of $4.7 billion, represented nine percent of transaction value in the 1st 3 Quarters of 2012 and 34 percent of Q3 2012 transaction value.