SEG Snapshot: 3Q17 SaaS M&A Update

The software industry recently eclipsed 600 quarterly M&A transactions, an industry first. In parallel, SaaS valuations (4.5x in 3Q17) continue to remain near historic highs. SaaS CRM & Marketing continues to be the leading product category in terms of M&A deal count.

3Q17 SaaS M&A Highlights:

  • SaaS valuations hover around all-time high, posting a median valuation of 4.5x. For SaaS valuations by product category, check out page 6.
  • CRM & Marketing continues to outpace other SaaS product categories in terms of deal volume. Please see page 5 for more on deal volume.
  • Private equity backed strategic buyers once again eclipse publicly traded strategic buyers. Interested in notable PE buyers? Head over to page 10.
  • Most active buyers in SaaS include WiseTech Global, Oracle, GE, Cisco, and more. For insight in their buying activity, see page 13.

SEG Snapshots, a new initiative for 2017, provide timely information and insight on the financial health, market performance, and acquisition activity across the software industry. Visit our website’s research page regularly throughout the year as we assess software market trends across public markets, industry verticals and product categories.