M&A2Q23 Quarterly SaaS Report

A rebound in the public market and strong M&A volume point to the durability of SaaS in the current markets.

Download the 2Q23 Quarterly SaaS Report

The improving outlook across the broader macroeconomy, industry excitement around AI, and overall investor optimism for growth businesses have contributed to a solid first half for publicly traded B2B SaaS companies. Meanwhile, continued strategic buyer and private equity interest has resulted in strong M&A outcomes for high-quality SaaS businesses exhibiting capital-efficient growth, strong retention, and product differentiation.

Our latest report highlights the following:

  • The SEG SaaS Index’s median stock price grew 19.1% YTD and posted a strong 6.0x EV/Revenue multiple, continuing its rebound from 2022 quarterly lows (5.4x in 4Q22).
  • Publicly traded ERP & Supply Chain SaaS businesses posted the highest median EV/TTM Revenue multiple out of all other product categories (8.6x in 2Q23), showcasing the resilience of mission-critical offerings regardless of market conditions.
  • Aggregate software industry deal momentum has been strong in recent quarters, reaching 900 deals in 2Q23. Deal volume in the first half of 2023 exceeded all prior years except 2022, a record-breaking year.
  • With 538 deals, SaaS M&A comprised 60% of aggregate deal activity and contributed to the second-highest first half of deal volume ever (1,105 in 1H23).
  • Private Equity appetite for SaaS M&A remains high as it continued to represent the majority (61.3%) of deals in 2Q23, maintaining its strong presence in SaaS M&A.

Download our full 2Q23 report to explore the latest trends and learn more.