SEG-Snapshot-1Q22-SaaS-MA-Update

M&ASEG Snapshot: 1Q22 SaaS M&A Update

SaaS M&A deal volume had a record high of 617 deals in 1Q22, the highest quarterly deal volume since we began tracking data in 2002.

Download the SEG Snapshot: 1Q22 SaaS M&A Update

SEG’s 1Q22 SaaS M&A update is a snapshot of M&A deal activity across the software industry. The report includes historical deal volume by product category and vertical, valuation stats, most active buyers, notable deals, private equity activity, and more.

Highlights:

  • The first quarter of 2022 started strong for M&A due to continuing momentum from 2021. The push to close deals at the end of last year to avoid capital gains tax resulted in a surplus of deals in 1Q22 and may not be representative of current market trends going forward.
  • The aggregate software industry surpassed 1,000 transactions, while SaaS M&A deal volume surpassed 600 transactions — both record breaking highs.
  • The median EV/Revenue multiple stayed strong at 7.7x, again reflecting the continued strength from 2021. We may see a softening of M&A markets in 2022 if current trends in public markets continue.
  • PE buyers made up 60% of deals in 1Q22, an increase from the typical 50% of the past few years.
  • Noteworthy deals included the acquisitions of Citrix by Vista Equity ($16.5B), Anaplan by Thoma Bravo ($10.4B), and CloudMed by R1 ($4B).