February 10, 2019 – Investment bank Solganick & Co. has published its latest software M&A Update and Report for Q4 2018. The following highlights the latest software mergers and acquisitions including valuations. You can also download the complete report here: Solganick Co Software MnA Update Report Q4 2018
Q4 2018 – Software M&A Update
- Total software M&A transaction volume in Q4 2018 was 233 compared to 265 in Q4 2017.
- Total transaction value in Q4 2018 rose by 205.73% compared to Q4 2017, from $25.09 bn to $76.71 bn.
- Median Deal Size in Q4 2018 was $100 mn compared to $50.5 mn in Q4 2017
- The software industry continues to be very active:
- Microsoft acquired Github for $7.5 bn
- IBM acquired Red Hat Systems for $34 bn
- Cisco acquired Duo for $2.35 bn
- Paypal acquired Hyperwallet for $0.40 bn
Valuation Highlights:
The average M&A EV/Revenue multiple for software companies paid was 5.77X in Q4 2018.
The average M&A EV/EBITDA multiple for software companies paid was 26.92X in Q4 2018.
Strategic acquirers paid an average of 7.2X EV/Revenue multiple for software companies in Q4 2018.
Solganick & Co. provides investment banking and M&A advisory services to the global software industry sector. For more information, please contact us.
