Notable SaaS M&A Deals from 1Q19

As reported in SEG’s 1Q19 SaaS M&A Report, there were a number of noteworthy SaaS transactions, including various high-profile deals (greater than $500M EV), mid-market deals ($200M-$300M EV), and mid & lower market deals (less than $200M EV).

Of the notable high-profile transactions, the lion’s share were made up of FinTech targets including Ellie Mae, eFront, and PieTech. Across the mid & lower market, HR & Talent Management providers Jobvite and Sage Payroll Business were among the mid and lower market targets.

We’ve included a summary of the quarter’s notable deals below:

Notable High-Profile SaaS Deals (Greater than $500M EV)

Private equity firm, Hellman & Friedman, acquired Ultimate Software Group for $11B (9.9x EV/Revenue). Ultimate Software Group is a provider of cloud-based human capital management software for businesses, including human resources, payroll and benefits management, and workforce management. The acquisition supports Ultimate Software’s vision of serving the global HR market and will allow the company to utilize financial and strategic advice to bring new features and services to the market more quickly.

Private equity firm, Thoma Bravo, acquired Ellie Mae for $3.7B (7.5x EV/Revenue). Ellie Mae is a leading provider of cloud-based mortgage loan origination software for the financial sector. The investment will enable Ellie Mae to remain committed to its customer’s success, innovation, and growth of the Encompass Digital Lending Platform, while reaching the next phase of growth as a company.

BlackRock, a provider of investment portfolio management advisory services, acquired eFront for $1.3B (9.3x EV/Revenue). eFront is a provider of technology solutions for managing the alternatives investment lifecycle, from due diligence and portfolio planning to performance and risk analysis, across a range of alternative asset classes. The acquisition, combined with BlackRock’s existing investment operating platform, Aladdin, will create an industry-leading comprehensive whole portfolio investment operating platform. Furthermore, eFront will extend Aladdin’s end-to-end processing solutions offering in alternative asset classes, enabling clients to get an enterprise view of their portfolio.

Envestnet, a provider of intelligent systems for wealth management and financial wellness, acquired PIEtech for $500M. PIEtech is a provider of collaborate financial planning SaaS, including MoneyGuide, a goals-based financial planning application used by financial advisors. The acquisition will position Envestnet as a leader in financial planning solutions as it compliments Envestnet’s existing solutions and provides clients with access to a more comprehensive application stack.

Notable Mid-Market SaaS Deals (between $200M and $300M EV)

Zix, a provider of security software solutions to healthcare and financial services companies, acquired AppRiver from Marlin Equity Partners for $275M (2.8x EV/Revenue). AppRiver is a leading provider of cloud-based email security and managed messaging software. The acquisition will expand Zix’ customer base, positioning it as a leading cloud-based email security provider to SMBs.

Major credit card provider, Visa, acquired Earthport, a provider of cross-border payment software and services for $269.4M (6.7x EV/Revenue). The acquisition will contribute to the development of Visa’s payment solutions, especially as Visa launches B2B Connect, its blockchain-based cross-border payment service, later this year.

Descartes, a provider of supply chain management software and SaaS, acquired Visual Compliance for $250M. Visual Compliance is a provider of foreign trade compliance software. The acquisition will be combined with Descartes’ MK Data denied parties screening business and Global Logistics Network to better help customers navigate the trade compliance landscape while managing the full lifecycle of their shipments.

Dropbox, a provider of subscription-based file storage, acquired HelloSign, a provider of e-signature automation, e-fax and document workflow management SaaS to businesses for $230M. The acquisition will add additional functionalities to the Dropbox offering, including new e-signature capabilities, e-fax features and workflow management functionality.

Cision, a provider of marketing campaign software, acquired TrendKite for $225 (8.9x EV/Revenue). TrendKite is a provider of AI-based digital PR management and analytics SaaS for brands and media companies globally. The transaction represents Cision’s third acquisition in six months, and will extend its leadership in communications measurement and attribution.

Notable Mid & Lower-Market SaaS Deals (less than $200M EV)

Atlassian, a provider of team collaboration and productivity software, acquired AgileCraft for $166M. AgileCraft is a provider of cloud-based AI-enabled project and portfolio management SaaS that enables organizations to scale agile by unifying and synchronizing work across programs and portfolios. The acquisition enables Atlassian to offer a unified solution for executives to align work across their organization.

Blackbaud, provider of cloud-based non-profit management software, acquired YourCause for $157M. YourCause is a provider of cloud-based software for organizations to organize and track charitable donations and volunteer activities by employees. The acquisition positions Blackbaud as an industry leader in providing solutions to both non-profit organizations and for-profit companies committed to social issues. The combination will enable companies to create a culture that engages and inspires employees and customers, while driving business success and powering measurable outcomes.

Healthcare technology company, Tabula Rasa HealthCare, acquired PrescribeWellness for $150M (5.2x EV/Revenue). PrescribeWellness is a cloud-based provider of patient relationship management solutions that facilitates collaboration between pharmacies and patients, payers, providers and pharmaceutical companies. The acquisition supports Tabula Rasa’s mission of expanding medication risk mitigation programs in community pharmacies.

Private equity firm, K1 Investment Management, acquired Jobvite, a provider of analytics-based recruitment management SaaS for businesses. K1 and Jobvite also announced the acquisition of Talemetry, RolePoint, and Canvas. The investment and acquisitions by K1 will enable Jobvite to create a comprehensive, end-to-end talent acquisition platform.

iSolved, a provider of HR Management SaaS, acquired Sage Payroll Solutions from The Sage Group for $94M (1.9x EV/Revenue). Sage’s payroll processing SaaS solutions will accelerate iSolved’s growth in HCM industry, specifically targeted toward the midmarket, while increasing its licensee and partner network as well.

For more insights, check out SEG’s 1Q19 SaaS M&A Report. The report includes historical deal volume and valuation statistics, most active buyers, notable deals, private equity activity, and more.

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