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Trend Reports

2012 Mid Year

 
 

2012 l 1st Half l Trends Report l Software Industry

Thursday, July 05, 2012

1ST HALF 2012 KEY HIGHLIGHTS

  • The largest announced transaction for 1st Half 2012 was Cisco Systems, Inc.’s acquisition of NDS Group, a subsidiary of Permira, for $4.96 billion.
  • The most active acquirer, either directly or through a partner or affiliated business, was Constellation Software, Inc. with nine acquisitions.
  • There were 119 financially sponsored transactions with an aggregate value of $8.49 billion, representing 15 percent of the total volume and 22 percent of the total value, respectively.

1ST HALF 2012 KEY TRENDS

  • Total transaction volume in 1st Half 2012 increased by six percent over 2nd Half 2011, from 742 to 785.
  • Total transaction value in 1st Half 2012 fell by five percent over 2nd Half 2011, from $40.45 billion to $38.49 billion.
  • The median revenue multiple decreased from 2.5x in 2nd Half 2011 to 2.1x in 1st Half 2012. The median EBITDA multiple moved slightly from 13.3x to 13.2x.
  • The segment with the largest increase in volume in 1st Half 2012 over 2nd Half 2011 was Consumer Software with a 29 percent increase from 109 transactions in 2nd Half 2011 to 141 transactions in 1st Half 2012.

M&A Market Overview

Berkery Noyes tracked 3,596 transactions between 2010 and 1st Half 2012, of which 1,207 disclosed financial terms, and calculated the aggregate transaction value to be $151.99 billion. Based on known transaction values, we project values of 2,389 undisclosed transactions to be $37.21 billion, totaling $189.20 billion worth of transactions tracked over the past two and a half years.

Disclosed median enterprise value multiples for all segments combined in this report were 12.1x EBITDA and 2.2x revenue.

Based on volume, the most active market segment that Berkery Noyes tracked over the past two and a half years was Niche Software with 1,640 transactions. This accounted for an aggregate transaction value of $69.99 billion.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment

Footnotes