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Trend Reports

2013 Mid Year

 
 

2013 l 1st Half l Trends Report l Software Industry

Monday, July 08, 2013

1ST HALF 2013 KEY HIGHLIGHTS

  • The largest transaction for 1st Half 2013 was the announced acquisition of BMC Software by a private investor group, led by Bain Capital and Golden Gate Capital, for $6.81 billion.
  • The segment with the highest disclosed median revenue multiple was Infrastructure Software at 3.1x revenue.
  • There were 120 financially sponsored transactions with an aggregate value of $12.91 billion, representing 17 percent of the total volume and 43 percent of the total value, respectively.

1ST HALF 2013 KEY TRENDS

  • Total transaction volume in 1st Half 2013 decreased by three percent over 2nd Half 2012, from 746 to 727.
  • Total transaction value in 1st Half 2013 remained nearly the same over 2nd Half 2012, from $29.91 billion to $29.56 billion.
  • The median revenue multiple moved slightly from 2.1x in 2nd Half 2012 to 2.0x in 1st Half 2013. The median EBITDA multiple increased from 10.4x in 2nd Half 2012 to 12.5x in 1st Half 2013.
  • The segment with the largest increase in volume in 1st Half 2013 over 2nd Half 2012 was Consumer Software with a 24 percent increase, from 106 transactions in 2nd Half 2012 to 131 transactions in 1st Half 2013.

M&A Market Overview

Berkery Noyes tracked 3,804 transactions between 2011 and 1st Half 2013, of which 1,149 disclosed financial terms, and calculated the aggregate transaction value to be $141.51 billion. Based on known transaction values, we project values of 2,655 undisclosed transactions to be $39.16 billion, totaling $180.67 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 during the last 30 months were 2.1x revenue and 12.1x EBITDA.

The most active acquirer between 2011 and 1st Half 2013, either directly or through a partner or affiliated business, was Vista Equity Partners with 35 transactions. The largest of these was the private equity firm's acquisition of Misys plc for $2.02 billion in 1st Half 2012. Vista Equity Partners' highest value deal in 1st Half 2013 was the acquisition of Websense, Inc. for $942 million.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment

Footnotes