SEG Snapshot: 2Q21 SaaS M&A Update

SEG’s 2Q21 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.

Report Highlights:

  • 2Q21’s 395 SaaS deals continue to put 2021 on pace for record deal volume. SEG expects deal volume to remain robust in the second half of 2021 due to a potential increase in capital gains taxes.
  • Increased demand for high-performing SaaS acquisitions amongst strategic and private equity buyers drove a strong 6.7x EV/Revenue multiple in 2Q21.
  • Healthcare, Real Estate, and Education were the most active verticals for SaaS M&A during 2Q21.
  • Private equity activity spiked during the quarter, accounting for an impressive 60% of SaaS M&A deals in 2Q21.
  • Investors were responsible for several mega transactions, including Thoma Bravo’s acquisitions of Proofpoint ($12.3B) and QAD ($2B), TPG Capital’s acquisition of Boomi ($4B), and Symphony Technology Group’s acquisition of FireEye ($1.2B). 

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