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Solganick & Co. issues its latest Software M&A Update for Q3 2020

Solganick & Co. Software M&A Update Q3 2020

Quick Answer

Solganick & Co.'s Q3 2020 Software M&A Update reported a strong rebound in software M&A activity, positioning it as one of the top M&A sectors in terms of deal value and volume after a weaker Q2. This resurgence was driven by the subsidence of initial market uncertainty, a renewed focus on transactions, and the return of debt financing availability. Communications, connectivity, and SaaS-based business models were particularly strong subsectors, with significant transactions including Clarivate's $6.8 billion acquisition of CPA Global. Additionally, IPO activity was robust, with Snowflake, Rocket Companies, and Palantir entering the public marketplace with over $120 billion in combined market capitalization.

November 30, 2020 – Solganick & Co. has issued its latest software M&A update for Q3 2020. The report highlights current trends and transactions within the software sector.

You can download the complete report here: Solganick & Co. – Software M&A Update Q3 2020

 

As of Q3 2o2o, the software industry has been one of the top M&A sectors in terms of deal value and volume. Relative to somewhat weak Q2, software M&A
activity returned in Q3 2020

  • The initial uncertainty and need to stabilize existing operations and portfolio companies subsided, allowing for
    renewed focus on transaction pursuit 
  • Debt financing availability returned in Q3, further enabling market participants to transact
  • Certain subsectors are particularly well positioned to succeed post pandemic
  • Communications and connectivity focused companies have benefitted from the sudden shift to remote work and education, a trend that is anticipated to persist longer term given widespread adoption
  • SaaS based business models are continuing to be highly resilient and sought after

 

Significant software transactions included:

  • Clarivate’s $6.8 billion acquisition of CPA Global
  • Roper’s $5.4 billion acquisition of Vertafore
  • AVEVA’s $5.0 billion acquisition of OSIsoft

 

IPO and financing activity during the quarter was extremely robust

  • Snowflake, Rocket Companies and Palantir entered the public marketplace with over $120 billion in combined market capitalization

 

Solganick & Co. is a data-driven investment bank and M&A advisory firm focused exclusively on software and tech-enabled services companies.

For more information about this report or the software M&A sector, please contact Solganick & Co. at Contact Us

Frequently Asked Questions

1 What were the key trends and drivers of software M&A activity in Q3 2020?

The report indicates that software M&A activity returned in Q3 2020, following a weaker Q2. This was driven by a renewed focus on transactions after initial uncertainty subsided, and the return of debt financing availability. Communications, connectivity, and SaaS-based business models were particularly well-positioned subsectors.

2 Which subsectors within software were particularly strong for M&A in Q3 2020?

Certain subsectors were particularly well-positioned to succeed post-pandemic. Communications and connectivity-focused companies benefited from the shift to remote work and education. SaaS-based business models also continued to be highly resilient and sought after.

3 Were there any significant software M&A transactions or IPOs mentioned in the Q3 2020 update?

Yes, significant software transactions included Clarivate's acquisition of CPA Global, Roper's acquisition of Vertafore, and AVEVA's acquisition of OSIsoft. IPO and financing activity was also robust, with Snowflake, Rocket Companies, and Palantir entering the public marketplace.

4 What is Solganick & Co.'s expertise regarding the software M&A sector?

Solganick & Co. is described as a data-driven investment bank and M&A advisory firm. They focus exclusively on software and tech-enabled services companies, providing insights into the M&A sector.