Q3 2015 KEY HIGHLIGHTS
- Car manufacturers BMW Group, Audi Group and Mercedes-Benz’s announced acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion was the largest strategic Software deal in Q3 2015.
- The Carlyle Group’s announced acquisition of Veritas Technologies Corporation, a provider of storage and server management software solutions, for $8 billion was the highest value sponsored transaction in Q3 2015.
Q3 2015 KEY TRENDS
- Total transaction volume in Q3 2015 declined by two percent over Q2 2015, from 1,085 to 1,065.
- As for the industry’s horizontal markets, Software volume saw a slight uptick; Online & Mobile volume decreased by seven percent; and Media & Marketing volume fell by six percent.
- Total transaction value in Q3 2015 increased by 13 percent over Q2 2015, from $65.9 billion to $74.5 billion.
MULTIPLES & VALUE TRENDS
- The median revenue multiple from 2014 through the 1st 3 Quarters of 2015 declined slightly, from 2.3x to 2.1x. The median EBITDA multiple decreased by ten percent, from 11.5x to 10.4x.
TOP TEN DEALS THROUGH Q3 2015
The top ten deals by value have seen five new additions since our half year report. In terms of Niche Software, which is targeted to specific vertical industries, the largest transaction in Q3 2015 and year-to-date was Vista Equity Partners’ acquisition of Solera Holdings in the automotive and property marketplace.
These five transactions, with an aggregate value of $23.5 billion, represented 13 percent of transaction value in the 1st 3 Quarters of 2015 and 32 percent of Q3 2015 transaction value in the Information Industry.