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Trend Reports

2013 Third Quarter

 
 

2013 l 3rd Qtr l Trends Report l Software Industry

Tuesday, October 01, 2013

Q3 2013 KEY HIGHLIGHTS

  • The most active financial sponsor year-to-date was Vista Equity Partners with 11 industry transactions, six of which occurred in Q3 2013. In terms of purchase price, Vista Equity Partners completed several notable deals during the quarter, such as the acquisition of Active Network, Inc. for $904 million, the acquisition of Omnitracs for $800 million, and the acquisition of Greenway Medical Technologies, Inc. for $644 million.
  • The overall industry's largest transaction both in Q3 2013 and year-to-date was the announced management buyout of Activision Blizzard, a video game developer, for $8.2 billion.

Q3 2013 KEY TRENDS

  • Total transaction volume in Q3 2013 improved by four percent over Q2 2013, from 386 to 401.
  • Total transaction value in Q3 2013 increased by 17 percent over Q2 2013, from $26.2 billion to $30.6 billion.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple from 2012 through the 1st 3 Quarters of 2013 experienced an uptick, from 2.1x to 2.3x.
  • The median EBITDA multiple from 2012 through the 1st 3 Quarters of 2013 moved slightly, from 11.3x to 10.8x.

TOP TEN DEALS THROUGH Q3 2013

The top ten deals by value have seen five new additions since our half year report, including one in the Infrastructure Software segment: Cisco Systems, Inc.'s acquisition of Sourcefire, Inc. This was also the highest value transaction in the cyber-security subset since 2010, when Intel Corporation acquired McAfee, Inc. for $7.5 billion.

These five transactions, with an aggregate value of $18.2 billion, represented 28 percent of transaction value in the 1st 3 Quarters of 2013 and 59 percent of Q3 2013 transaction value.



 

Top Ten Deals

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