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Trend Reports

2013 Third Quarter

 
 

2013 l 3rd Qtr l Trends Report l Private Equity Industry

Monday, October 21, 2013

Q3 2013 KEY HIGHLIGHTS

  • The largest transaction in Q3 2013 was Thoma Bravo's acquisition of Intuit Financial Services for $1.0 billion. Thoma Bravo had nine Information Industry transactions year-to-date, four of which occurred in Q3 2013.

Q3 2013 KEY TRENDS

  • Total transaction volume in Q3 2013 increased by 18 percent over Q2 2013, from 100 to 118.
  • Total transaction value in Q3 2013 decreased by 52 percent over Q2 2013, from $20.0 billion to $9.7 billion. However, value in Q2 2013 was skewed by the acquisition of BMC Software, Inc. for $6.8 billion. Overall value in the 1st 3 Quarters of 2013 remained almost constant when compared to the same timeframe in 2012.
  • Transaction volume in the industry's Healthcare vertical declined by 26 percent over the past three months. This followed a 73 percent rise between Q1 2013 and Q2 2013.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple from 2012 through Q3 2013 increased by 17 percent, from 1.8x to 2.1x.
  • The median EBITDA multiple from 2012 through Q3 2013 improved by 14 percent, from 9.8x to 11.2x.

TOP TEN DEALS THROUGH Q3 2013

The top ten deals by value have seen four new additions since our half year report: Thoma Bravo's acquisition of Intuit Financial Services, Vista Equity Partners' acquisitions of The Active Network and Omnitracs, and TA Associates-backed Ion Trading's acquisition of Triple Point Technology.

These four transactions, with an aggregate value of $3.7 billion, represented 12 percent of transaction value in the 1st 3 Quarters of 2013 and 38 percent of Q3 2013 transaction value.



 

Top 10 Deals