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M&ASEG 2019 Annual Software Industry Report

The software industry M&A market boasts another record year. Overall deal activity in 2018 reached an all-time high of 2,746 M&A transactions, breaking the prior record set just last year.

Download the SEG 2019 Annual Software Industry Report

The years 2017 and 2018 marked the highest levels of sector M&A deals since 2000. What’s more, software industry M&A valuations remained very strong on the back of record M&A activity.

Additionally, public market valuations reached near record levels in 3Q18 prior to softening in the fourth quarter. Notably, the SaaS Index reached a median multiple of 8.4x EV/Revenue, while the Software Index reached 4.4x, a very healthy mark for predominately licensed based businesses.

In 2019, we expect software industry M&A activity and valuations to remain above historical norms as private equity firms and strategic buyers continue to be highly acquisitive.

Please download your complimentary copy of SEG’s 2019 Annual Report for detailed insight into software industry public market performance and M&A activity. Contact us with any questions or to discuss industry trends in more detail.