2Q22-SaaS-MA-Update-Resource

M&ASEG Snapshot: 2Q22 SaaS M&A Update

Q2 posted 580 SaaS M&A transactions and amounted to one of the most active quarters on record.

Download the SEG Snapshot: 2Q22 SaaS M&A Update

SEG’s 2Q22 SaaS M&A update is a snapshot of M&A deal activity across the software industry. The report includes historical deal volume, transaction count by vertical, valuation stats, most active buyers, notable deals, private equity activity, and more.

Highlights:

  • Q2 posted 580 SaaS M&A deals, the second highest transaction count on record. The quarter’s strength was due, in large part, to a surprising rebound in M&A during June, which accounted for 218 deals (the most active month on record).
  • The median SaaS M&A EV/Revenue multiple of 6.4x dropped 16.9% QOQ, yet only declined 4.5% YOY. This starkly contrasts median public market multiples, which fell 53% YOY.
  • Overall, buyer appetite for high-quality SaaS businesses remains strong from both private equity and strategic buyers. Still benefiting from the early stages of broader digital transformation trends and rapidly evolving markets, strategic buyers remain interested in leveraging inorganic growth to plug product gaps and enter new markets. Private equity buyers, which account for 60%+ of M&A transactions, can look beyond near-term public market investor sentiment changes and leverage their longer-term investment time horizon in evaluating a business and its long-term market and financial prospects.
  • Noteworthy deals in Q2 included the acquisitions of Zendesk by Permira ($10.2B), Datto by Kaseya ($6.2B), and Brightly (Formerly Dude Solutions) by Siemens ($1.6B).