The Software Equity Group has published their 3Q18 SaaS M&A Update.  SEG regularly publishes comprehensive free research on the state of M&A in the tech space.  It is invaluable resource in tracing the key trends and development in the market.  A few of the key findings include:

  • Aggregate software industry M&A deal volume (including SaaS, on-premise license model, internet, and mobile transactions) reached 667 transactions in 3Q18
  • Median TTM/Revenue multiple was 4.6X TTM Revenue
  • eCommerce segment had the highest multiple at 7.2x TTM Revenue
  • Communication and Collaboration segment was the lowest at 2.7x TTM Revenue
  • 32% of the deals were <3.0x TTM Revenue, while 31% > 6.0x TTM Revenue

The report includes a ton of other data such as revenue multiples by seller revenue, life span of target customers, and a list of the 667 transactions.  You can access the entire 3Q18 SaaS M&A Update here.

By John Mecke

John is a 25 year veteran of the enterprise technology market. He has led six global product management organizations for three public companies and three private equity-backed firms. He played a key role in delivering a $115 million dividend for his private equity backers – a 2.8x return in less than three years. He has led five acquisitions for a total consideration of over $175 million. He has led eight divestitures for a total consideration of $24.5 million in cash. John regularly blogs about product management and mergers/acquisitions.