M&A2Q23 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.