SEG Snapshot: 3Q20 SaaS M&A Update

SEG’s 3Q20 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.

Aggregate software industry M&A deal volume exhibited a sharp V-shaped recovery in 3Q20, rising 40% from 2Q20 to a record 815 transactions.

SaaS M&A deal volume surged to a record 374 deals in 3Q20. The quarter’s deal count represents a whopping 81% increase over 2Q20 and is 15% higher than 3Q19’s previous record 326 deals.

SaaS M&A sustained near record deal volume during each month of 3Q20.

The median SaaS M&A multiple reached a record 5.1x EV/Revenue during 3Q20.

Private equity buyers, sitting on record stockpiles of cash, drove the majority (52.4%) of SaaS deal volume during 3Q20.  

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