San Francisco Investment Banking and M&A Advisory Firm for Technology and Digital Media Companies

Q3 2017 Software M&A Update

November 28, 2017 – Los Angeles and San Francisco, CA – Solganick & Co. has issued its latest M&A update for the software industry for the latest period Q3 2017.  You can download the report here: Solganick Co Software M&A Update Q3 2017

 

The following summarizes the M&A update report:

  • Software and tech-enabled services dominated overall technology deal value and volumes during Q3 2017, accounting for 46% of M&A deal flow. Transaction volume in Q3 2017 decreased by 9% versus Q3 2017. While Total transaction value in Q3 2017 increased 14% over Q2 2017.
  • Application software accounted for 56% of software deals in Q3 2017 .
  • The median revenue multiple declined from 2.7 x in 2016 to 2.2x in Q3 2017.
  • The median EBITDA multiple remained constant during this timeframe at 12.9x.
  • The software market has slowed significantly as Q1 2017 still accounts for 56% of overall value for the first 3 quarters of 2017, including the 6 largest deals of the year so far.
  • The sale of Symantec’s website security and related PKI solutions to DigiCert for $950 million marked the largest cyber security transaction of the year.
  • Global M&A activity in Q3 2017 was USD $819.7 billion – deal value decreased by 3.03% compared to Q2 2017.
  • The first nine months of 2017 proved US market’s busiest first nine months in 11 years, according to Thompson Reuters.
  • Five out of the ten largest deals in Q3 were focused in the US, indicating a shift away from Europe in the last few months.

 

For the complete report, go here: Solganick Co Software M&A Update Q3 2017

Solganick & Co., Inc. is an independent investment banking and M&A advisory firm focused exclusively on the global software, IT services, and digital media industry sectors. We advise buyers and sellers of companies and efficiently execute M&A transactions that help increase shareholder value. Our professionals have advised on $20+ billion in M&A transactions to date and have current clients and relationships globally with entrepreneurs, companies and leading private equity firms within the sectors we cover.

Please contact us for information regarding this report or to inquire about an M&A transaction.

Posted in Quarterly Update, Sector Analysis, Software M&A and tagged , .