We understand that as a software executive, you’re quite busy. In that regard, we created SEG’s Software M&A Brief to provide a quick and insightful recap of the week’s notable software M&A deals.
Last week’s notable deals included acquisitions by Roper Technologies, Oracle, and Silver Lake Partners:
Roper Technologies Acquired PowerPlan
Roper Technologies announced the acquisition of PowerPlan, a provider of software and solutions for financial and compliance management, for $1.1B (7.3x EV/Revenue). Previously owned by private equity firm Thoma Bravo, PowerPlan enables customers to get the enhanced financial, tax, and operational information they need to improve performance and achieve regulatory compliance. The transaction falls in line with Roper’s capital deployment strategy of acquiring growing and high performing niche businesses.
In addition, this represents Roper’s second billion-dollar acquisition from Thoma Bravo, following the acquisition of Deltek in 2016 ($2.8B, 5.2x EV/Rev). (Read Press Release)
Oracle Acquired DataScience.com
Enterprise tech giant Oracle acquired DataScience.com, a provider of a cloud workspace platform for data science projects and workloads. The company’s platform allows customers to organize work, easily access data and computing services, and execute end-to-end model development workflows. Oracle intends to utilize the DataScience platform to create a single, unified platform in conjunction with it’s existing Oracle Cloud Infrastructure platform, leveraging machine learning and big data for improved business analytics. The acquisition supports Oracle’s strategy of expanding within the AI sector, as it contributes to Oracle’s existing cloud AI platform solutions.
Furthermore, DataScience represents Oracle’s fourth acquisition in 2018 following the purchase of Zenedge (cloud-based cyber security solutions), Grapeshot (brand safety and contextual intelligence solutions), and Vocado (financial aid solutions for higher ed.). (Read Press Release)
Silver Lake Partners Acquired ZPG
Private equity firm Silver Lake Partners announced the acquisition of Britain’s Zoopla Property Group (ZPG) for $2.98B. ZPG owns and operates a plethora of home-related software solutions including Zoopla, one of the biggest property portal websites in the U.K. The transactions follows close on the heels of ZPG’s recent acquisition activity, including their 2017 purchase of Calcasa and Expert Agent, providers of cloud-based property data, information and solutions for real estate agents. With backing by Silver Lake Partners, ZPG is able to take steps to accelerate their growth.
This transaction reflects the health of the M&A markets, particularly in the real estate software sector. According to SEG’s 2018 Real Estate Software Snapshot, 2017 was a record-setting year for the sector, as real estate software deal volume reached 100 transactions. Deal volume continued to grow for the fourth consecutive year, and has grown by 17% on a CAGR basis since 2014. In addition, SEG has tracked a number of notable sector transactions through the first four months of 2018 (see SEG’s Spring 2018 SaaS M&A Update), including RealPage’s acquisition of ClickPay, and Trimble’s acquisition of Viewpoint, which points to the continuing health of the real estate software M&A market.
Brief Transaction Details:
|Total Transaction Value (B)||$2.98|
|Enterprise Value (B)||$3.14|
|TTM Seller Revenue (m)||$327.59|
|TTM Seller EBITDA (m)||$118.98|
|TTM Revenue Multiple||9.6x|
|TTM EBITDA Multiple||26.4x|
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