I regularly track SaaS valuations and M&A activity. I appreciate solid fact-based analyses. For years, I have enjoyed the Software Equity Group’s reporting. They recently published their SEG 2025 Annual SaaS Report. It dives into 2024 SaaS M&A activity and in-depth stats/metrics of the 128 SaaS public firms included in the SEG SaaS Index.
This analysis presents thirteen extracts from the report:
- 2024 Saas M&A Deal Volume
- 2024 SaaS Median EV/TTM Revenue Multiples
- 2024 Horizontal vs Vertical SaaS Deals
- 2024 SaaS M&A by Buyer Type
- SaaS Firms in SEG SaaS Index
- 2024 SEG SaaS Index Median Metrics
- 2024 Median Operating Ratios & Margin Performance
- 2024 EV/TTM Revenue vs Weighted Rule of 40
- Median TTM Growth Rate by Saas Category
- Median EV/TTM Revenue Multiples by SaaS Category
- Selected SaaS Categories Key Metrics
- Analytics & Data Management
- DevOps & IT Management
- ERP & Supply Chain
- Vertically Focused SaaS
2024 Saas M&A Deal Volume
2024 SaaS Median EV/TTM Revenue Multiples
2024 Horizontal vs Vertical SaaS Deals
2024 SaaS M&A by Buyer Type
PE-backed strategics remain the most active buyer type, making up 51% of deals in 2024 and 52% in Q4. Between platforms and portfolio add-ons, private equity was involved in 61% of SaaS deals in 2024.
Strategic buyers (both publicly traded and privately held) were the buyers in 39% of SaaS transactions in 2024, consistent with the prior two years but off the high 40s percentage they comprised in 2021 and 2022. As public strategics (22% of ‘24 deals, high 20’s-mid 30’s historically) effectively operate in the current backdrop, they are expected to increase their priority on M&A acquisitions as inflation and interest rates continue to decline.
SaaS Firms in SEG SaaS Index
2024 SEG SaaS Index Median Metrics
2024 Median Operating Ratios & Margin Performance
2024 EV/TTM Revenue vs Weighted Rule of 40
Median TTM Growth Rate by Saas Category
Median EV/TTM Revenue Multiples by SaaS Category
Selected SaaS Categories Key Metrics
Analytics & Data Management
DevOps & IT Management
ERP & Supply Chain
Vertically Focused SaaS
Also published on Medium.