London, United Kingdom – September 7, 2022. The latest report on enterprise software mergers and acquisitions from Hampleton Partners, the global M&A and corporate finance advisory firm for technology companies, reveals that the sector has seen a frenzy of merger activity and acquisitions in the first six months of 2022, with a total of 1,015 transactions recorded, breaking the previous record of 953 transactions in 2H2021.
Miro Parizek, Founder and Principal Partner, Hampleton Partners, said, “Mergers and acquisitions in the enterprise software sector have remained remarkably robust. This runs counter to the overall reduction in global mergers and acquisitions, which fell 27% year-over-year due to geopolitical and macroeconomic events that have shaken market confidence, including the armed conflict. in Ukraine, the disruption of supply chains and the raising of central bank interest rates to control inflation.
Business software Computer and smartphone
“Accelerating demand for cloud-based services continues to be a significant driver of transactions as enterprises modernize and scale up operations to take advantage of strong market demand. Substantial SaaS-based recurring revenue streams embedded into many target businesses, giving them a measure of recession protection.
Half-year median valuation multiples increased sharply in 1H2022: the 30-month revenue multiple reached a record 5.2x, while the corresponding EBITDA multiple reached a new record of 20.3x, exceeding pre-pandemic levels.
19 enterprise software deals closed at over $1 billion in the first half of 2022, while 5% sold for over $100 million. However, the majority of enterprise software deals were under $100 million.
Top Enterprise Software Acquirers – Last 30 Months
In the first half of 2022, Norwegian company Visma became the top acquirer with 21 deals, while Canadian company Volaris came second, with 20 deals focused on acquiring enterprise app targets and apps. vertical.
Visma – 21 acquisitions including Teamleader NV, Mandu, Woffu Job Organizer
Volaris – 20 acquisitions including Alemba, Sunrise Software, Datapro Inc
ThomaBravo – 19 acquisitions including Anaplan, Circle Cardiovascular Imaging, UserZoom Technologies
Largest enterprise software deals disclosed in 1H2022
$61.0 billion – Broadcom acquired VMware at 5.3x revenue and 20.6x EBITDA
$13.2 billion – Vista Equity Partners acquired Citrix Systems at 5.2x revenue and 28.0x EBITDA
$13.1 billion – Intercontinental Exchange acquired Black Knight with 11.2x revenue and 24.8x EBITDA
The future of enterprise software mergers and acquisitions
Miro Parizek continued: “The market for corporate mergers and acquisitions is now very attractive for both sellers and buyers.
“Smaller vendors in niche sectors are facing inflation, talent recruitment challenges and growing competition from tech giants. Many are using the attractive M&A market in enterprise software to sell to a commercial buyer, merge or partner with a private equity player to defend or establish leadership positions globally.
“Other companies are looking to target technology companies in the areas of artificial intelligence, machine learning and blockchain that can help them solve supply chain problems.
“Overall, this combination of factors and the need to implement quick fixes to take advantage of disproportionately high market demand is expected to drive enterprise software mergers and acquisitions. However, business leaders should carefully monitor changing levels of political and economic uncertainty and constantly monitor their buy and sell decisions.
Hampleton’s Enterprise Software M&A Report analyzes transactions, trends and activity in enterprise applications; Business intelligence and customer analysis; Information management; vertical applications; Infrastructure management and design, test and simulation segments.
Download Hampleton Partners’ full H2 2022 Enterprise Software M&A Market Report: https://www.hampletonpartners.com/reports/enterprise-software-report/.
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Note to Editors:
Hampleton Partners’ M&A market reports are compiled using data and information sourced from the 451 Research database (www.451research.com).
About Hampleton Partners
Hampleton Partners is at the forefront of international mergers and acquisitions and corporate finance advisory for technology-focused companies. Hampleton’s experienced dealmakers have built, bought and sold more than 100 fast-growing technology companies and provide hands-on expertise and unparalleled advice to entrepreneurs and technology companies looking to accelerate their growth and maximize their value.
With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective with industry expertise in the following areas: Artificial Intelligence, Autotech, Cybersecurity, Digital Commerce, Enterprise Software, Fintech, Healthtech, HR Tech, Insurtech and IT & Business Services.
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