thumbnail

M&ASEG SaaS Update: July 2023

July was a robust month for SaaS M&A deal volume, while the SEG SaaS Index continues to climb.

Download the SEG SaaS Index Update: July 2023

Our July SaaS update provides insightful data on the valuation and financial performance trends of 122 publicly traded SaaS companies within the SEG SaaS Index. We also analyze 185 SaaS M&A deals recorded in July and show month-over-month deal volume by product category and vertical.

Highlights:

  • The Index’s median EV/Revenue multiple for July stood at 6.0x, marking a continuous rise from December 2022’s 5.2x. This 6x median for July is second only to one other month in the last eleven.
  • Despite an observable dip in April’s median share price performance, the SaaS Index continues to climb, with median price performance surging by 25.8% YTD (as of the end of July). For context, slide 6 in our report visually captures this impressive trajectory.
  • DevOps & IT Mgmt. topped the charts with a YTD price change, escalating by 49.5%. Close followers included ERP & Supply Chain, and Vertically focused businesses, which saw a surge of 41.1% and 29.2%, respectively.
  • July was a robust month for SaaS M&A deals, with a total of 185 recorded. This figure is impressive, especially when considering that the 12-month average stands at 173.
  • The healthcare sector led the charge with 22 deals, while financial services followed with 11. Furthermore, Sales & Marketing dominated product categories in July, accounting for 27 deals.