News and Research

Software M&A Update, Q3 2021

Software M&A Update, Q3 2021 - Solganick & Co.

January 4, 2022 – Solganick & Co. has issued its latest Software M&A Update for Q3 2021.

The following provides a summary of the report:

With impressive Q1 and Q2, software M&A activity remains strong in Q3 2021.

Aggregate software industry M&A volume continues to reach new heights, as the third quarter of 2021 posted a record 884 transactions. For context, until late 2020, aggregate software industry deal volume had yet to eclipse 700 transactions in the past five quarters.

Top 4 M&A transactions in the third quarter constituted ~50% of the cumulative transaction value of the total 884 transactions reporting $62.8 billion

  • Intuit’s $12.0 billion acquisition of The Rocket Science Group
  • NortonLifeLock’s $8.0 billion acquisition of Avast
  • Thoma Bravo’s $7.0 billion acquisition of Medallia
  • Clearlake Capital’s $4.9 billion acquisition of Cornerstone

Certain subsectors are particularly well-positioned to succeed in 2022 and post-pandemic including:

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.

Notable software transactions included:

  • Hexagon’s $2.7 billion acquisition of Global Enterprise Asset Management (EAM) Business of Infor
  • Moody’s $1.9 billion acquisition of Risk Management Solutions
  • Pegasus Corp One’s $1.9 billion acquisition of Mailgun Technologies
  • Equifax Workforce Solutions’ $1.8 billion acquisition of Appriss
  • Vista Equity Partners’ $1.5 billion acquisition of Blue Prism

IPO and financing activity during the quarter was extremely robust

Krafton, Robinhood Markets and Zomato entered the public marketplace with over $60 billion in combined market capitalization

The most active private equity investor was Thoma Bravo

You can download the complete report here: Software M&A Update Report Q3 2021

About Solganick & Co.

Solganick & Co. is a data-driven investment bank and M&A advisory firm focused exclusively on the software and tech-enabled services industry sectors. For more information on the firm’s software M&A practice, go here: Software

To inquire about a software M&A transaction, please email us: [email protected]