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Q3 2010 Private Equity, Information Industry Trends
- The most active acquirer through Q3 2010 was Thoma Bravo, LLC with 9 purchases: Computer Systems Company, Inc., Hershey Systems, Inc., LANDesk Software, Inc., Beyond Appraisal, Inc., SonicWALL, Inc., Double-Take Software, ManageSoft Corporation, PLATO Learning, Inc. and eWebHealth.
- The largest transaction in Q3 2010 by volume was KKR’s acquisition of Visma ASA, a business software and services provider for accounting and administration headquartered in Oslo, Norway.
Third Quarter Key Trends
- Total transaction volume in Q3 2010 increased by 4 percent over Q2 2010, from 70 to 73 transactions.
- Total transaction value in Q3 2010 increased by 1 percent over Q2 2010, from $9 billion to $9.1 billion.
Multiples & Value Trends
- Median multiples have recovered from 2009 to the first nine months of 2010. Median EBITDA multiples increased from 10.4 to 10.5, a less than one percent increase, yet median revenue multiples rose from 1.3 to 2, a 53 percent increase.
- Median value has made a return from the lows of 2009, due in large part to the strong value of transactions in Q2 and Q3 2010.
Top Ten Deals Through Q3 2010
- The top ten deals by value have shifted since our half year report, with 4 acquisitions entering the list from Q3 2010: KKR’s acquisition of Visma ASA, RBS WorldPay, Inc.’s acquisition by Bain Capital and Advent International Corporation, Hellman & Friedman LLC’s acquisition of Internet Brands, Inc., and GI Partners’ acquisition of SoftLayer Technologies.
- These 4 acquisitions, with a total value of $4.7 billion, represent 21 percent of total transaction value for the 1st nine months of 2010, and 36 percent of the Top 10 transaction value for the 1st nine months of 2010.