July 11, 2017 – Solganick & Co. has issued its latest Software M&A Update for Q2 2017. You can download the complete report here: Solganick – Software M&A Update for Q2 2017
The following summarizes the highlights of the report:
- Global M&A activity in Q2 2017 was USD $793.9 billion – deal value increased by 6.36% compared to Q1 2017.
- The first six months of 2017 proved the middle market’s most productive first half in 10 years, inking 5,620 deals, according to Thompson Reuters.
- Global M&A activity has been motivated by limited organic growth options and the need to address the business model transformation that is occurring across industries. Example, Amazon’s acquisition of Whole Foods Market.
- Software dominated overall technology deal value and volumes during 1st half 2017. Transaction volume in 1st Half 2017 increased 12 percent versus 2nd Half 2016, from 985 to 1,099.
- Infrastructure Software contributes to the largest rise in volume in 1st Half 2017 versus 2nd Half 2016 with a 21 percent gain, from 132 to 160 transactions.
- The median revenue multiple moved slightly from 2.5x in 2nd Half 2016 to 2.3x in 1st Half 2017.
- The median EBITDA multiple remained constant during this time-frame at 13.3x.
- Transactions in 1st Half 2017 with enterprise values above $160 million received a median revenue multiple of 3.9x, whereas those in the $10 – $20 million range had a median revenue multiple of 2.2x.
You can download the complete report here: Solganick – Software M&A Update for Q2 2017
Solganick & Co. is an independent investment banking and M&A advisory firm exclusively covering the software, tech-enabled services and digital media sectors globally. For more information, please contact us.