1st Half 2009 Software Industry Trends

1st Half 2009 Key Highlights

  • The most active buyer in the Software Industry, in terms of volume of transactions announced for the 1st Half of 2009, was Oracle Corporation with 5 transactions. These include the acquisitions of Conformia Software, Inc., Virtual Iron Software, Inc., and mValent, Inc., as well as the pending acquisitions of Sun Microsystems, Inc., and Relsys International, Inc.
  • The largest transaction for the 1st Half of 2009 was Oracle Corporation’s announced acquisition of Sun Microsystems, Inc. for $5.64 billion.
  • In the 1st Half of 2009, there were 50 financially sponsored transactions with an aggregate value of $860 million. These figures represent 15 percent of the total volume and 5 percent of the total value, respectively.

1st Half 2009 Key Trends

  • Total transaction volume in the 1st Half of 2009 decreased by 10 percent over the 1st Half of 2008 from 374 in 2008 to 336 in 2009.
  • Total transaction value in the 1st Half of 2009 decreased by 27 percent over the 1st Half of 2008, from $24.46 billion in 2008 to $17.78 billion in 2009.

M&A Market Overview

Out of 1889 transactions tracked by Berkery Noyes between 2007 and the 1st Half of 2009, 697 had disclosed enterprise values with an aggregate of $112.77 billion. Using these values in a histogram on a logarithmic scale, we project an aggregate value of $29.13 billion for the 1192 undisclosed transactions. In total, we project a combined aggregate value of $141.90 billion worth of transactions over the past two and a half years.

The largest transaction tracked by Berkery Noyes between 2007 and the 1st Half of 2009 was Oracle Corporation’s acquistion of BEA Systems, Inc. for $7.11 billion.

Berkery Noyes determined that nearly one-third of companies sold between 2007 and the 1st Half of 2009 received enterprise values between $4 million to $33 million.

The most active buyer in the Information Industry in terms of volume between 2007 and the 1st Half of 2009 with 27 transactions was Oracle Corporation.