M&ASEG Snapshot: 1Q21 SaaS M&A Update

SEG’s 1Q21 SaaS M&A update is a snapshot of M&A deal activity across the software industry. The report includes historical deal volume by product category and vertical, valuation stats, most active buyers, notable deals, private equity activity, and more.

Highlights:

• Aggregate software industry deal volume reached 724 transactions in Q1, setting up for another very active period of M&A activity in 2021.
• SaaS M&A deal volume rose 19.5% YOY as buyers acquired a first-quarter record 354 SaaS M&A targets in 1Q21.
• The median SaaS M&A multiple continued to rise considerably in 1Q21, reaching 6.3x EV/TTM Revenue.
• Private equity continued to account for a large portion of SaaS M&A transactions during the quarter.
• Healthcare, Real Estate, Education, and Financial Services were the most active verticals for SaaS M&A activity in 1Q21.