1ST HALF 2016 KEY HIGHLIGHTS
- The Infrastructure segment’s largest deal in 1st Half 2016 was Symantec Corporation’s announced acquisition of Blue Coat Systems in the cyber-security sector for $4.72 billion.
- There were 196 financially sponsored transactions with an aggregate value of $25.44 billion, representing 18 percent of the total volume and 35 percent of the total value, respectively.
1ST HALF 2016 KEY TRENDS
- Total transaction volume in 1st Half 2016 increased four percent over 2nd Half 2015, from 1,028 to 1,068.
- Total transaction value in 1st Half 2016 fell by 58 percent over 2nd Half 2015, from $156.21 billion to $65.85 billion.
- Eight of the industry’s top ten largest deals in 2015 occurred during the second half of the year. Aggregate value in 1st Half 2016 rose 17 percent on a year-over-year basis.
- The median revenue multiple rose from 2.1x in 2nd Half 2015to 3.2x in 1st Half 2016. The median EBITDA multiple stayed almost constant during this timeframe at 13.1x.
- Transactions in 1st Half 2016 with enterprise values above $160 million received a median revenue multiple of 4.2x,whereas those in the $10-$20 million range had a median revenue multiple of 2.5x.
- The segment with the largest rise in volume in 1st Half 2016 over 2nd Half 2015 was Consumer Software with a 20 percent gain, from 99 to 119 transactions.
M&A Market Overview
Berkery Noyes tracked 4,984 Software transactions between 2014 and 1st Half 2016, of which 1,103 disclosed financial terms, and calculated the aggregate transaction value to be $313.96 billion. Based on known transaction values, we project values of 3,881 undisclosed transactions to be $89.56 billion, totaling $403.52 billion worth of transactions tracked over the past two and a half years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.7x revenue and 12.7x EBITDA.