Software M&A Update and Report for Q4 2018

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.


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