M&A and Valuation Insights in Technology & Software Industry
Explore the latest insights and trends in M&A activity, valuation data, and industry analysis within the technology and software sector. Gain valuable information on transaction analysis, median values, EV multiples, and trading performance to stay informed in this dynamic market.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Technology & Software Industry M&A and Valuation Insights April 2024 www.peakstone.com
Overview 25+ Years Average Years of Peakstone MD Experience 500+ $200+ Billion Capital Raised by Peakstone MDs 2008 Year Founded Transactions by Peakstone MDs 18+ 40+ 30+ Countries Global Reach $10 - $500 Million Client Revenue Profile Industries Covered Investment Banking Professionals Selected Transactions Sale M&A Advisor M&A Advisor M&A Advisor M&A Advisor M&A Advisor M&A Advisor Strategic Advisor M&A Advisor M&A Advisor M&A Advisor M&A Advisor M&A Advisor Contact Information Alex Fridman Managing Partner (312) 346-7303 afridman@peakstone.com Stephen Sleigh Managing Partner (312) 346-7318 ssleigh@peakstone.com Jeff Temple Managing Partner (312) 346-7301 jtemple@peakstone.com Noah Robles Associate (305) 494-2035 nrobles@peakstone.com Michael Dobin Analyst (847) 609-9492 mdobin@peakstone.com Page 2
U.S. M&A Activity Technology & Software M&A Count Across the U.S. (2000 Mar 2024) 26 818 36 560 53 24 49 278 70 397 259 26 1,941 447 1,943 102 70 328 83 824 584 763 203 976 528 222 97 456 945 19 155 203 812 100 101 7,947 247 108 583 38 504 74 140 156 33 920 2,079 82 5 1,360 13 19 U.S. Technology & Software M&A Count (2000 Mar 2024) (#) 2000 147 53 1500 113106137 130144 116 94 116 76 95 40 72 76 97 79 54 78 65 55 1000 48 1,789 1,776 38 45 1,207 1,323 1,224 1,290 1,2721,029 1,185 1,175 1,1759857939951,064 1,170 1,118 1,063 500 860937 1,297 1,082 1,165 1,053 16 275 0 Strategic Financial Source: Capital IQ Note: As of March 31, 2024 Page 3
Transaction Analysis Median Transaction Value (2000 Mar 2024) ($ in millions) $60 $50 $40 $30 $20 $10 $23 $13 $14 $14 $16 $16 $19 $16 $12 $12 $17 $19 $21 $19 $25 $21 $25 $30 $31 $42 $33 $53 $50 $55 $45 $0 Median EV Multiples (2000 Mar 2024) 27.3x 30.0x 22.3x 21.4x 19.3x 18.5x 20.0x 17.4x 17.7x 14.0x 16.2x 16.0x 16.0x 15.5x 15.2x 14.8x 12.8x 14.9x 13.3x 12.8x 12.1x 12.3x 11.9x 11.7x 10.0x 10.1x 10.1x 1.7x1.3x 1.4x1.7x1.9x1.6x 1.6x 1.6x 1.5x 1.7x2.0x 2.0x 1.8x2.1x 2.0x2.5x 2.6x 2.5x3.0x2.7x4.0x4.8x 4.1x 2.7x2.0x 0.0x EV/EBITDA EV/Revenue Source: Capital IQ Note: As of March 31, 2024 Page 4
Trading Analysis Relative Stock Performance (2013 Mar 2024) 900% Software: 791% 700% 500% SaaS: 404% Internet: 342% 300% S&P 500: 231% FinTech: 209% 100% (100%) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2023 2024 EV/Revenue Trend (2013 Mar 2024) 50.0x 40.0x 30.0x 20.0x SaaS: 11.5x Software: 9.6x 10.0x FinTech: 5.8x S&P 500: 3.2x Internet: 3.0x 0.0x 2013 2014 2015 2016 2017 2018 2019 2020 2021 2023 2024 Key Peakstone SaaS Index ( SaaS ) Peakstone Software Index ( Software ) Peakstone Internet Index ( Internet ) Peakstone Financial Technology & Software Index ( FinTech ) S&P 500 Peakstone SaaS Index: CRM, WDAY, VEEV, TEAM, DDOG, CRWD, U, GWRE Peakstone Software Index: MSFT, ORCL, CSCO, ADBE, IBM, HPQ, NOW, INTU Peakstone Internet Index: AMZN, BARK, EBAY, W, XMTR, GOOGL, META, NFLX Peakstone Financial Technology & Software Index: MA, V, FIS, PYPL, GPN, SQ, MQ, JKHY, ADP, MCO, PAYX, WU Source: Capital IQ Note: As of March 31, 2024 Page 5
Selected Transactions Deal Size ($mm) Date Target Buyer Target Description Transaction Comments One Network Enterprises develops supply chain management software solutions for various organizations Blue Yonder Group entered into a binding agreement to acquire One Network Enterprises for approximately $839 million on March 29, 2024 One Network Enterprises Blue Yonder Group Mar-2024 $839 Francisco Partners Management and Jama Software entered into a definitive agreement to acquire Jama Software from Insight Venture Management, Madrona Venture Group and others for $1.2 billion on March 18, 2024 Jama Software develops a SaaS based management software solution for requirements, risk, and test management Francisco Partners Management Mar-2024 Jama Software $1,200 Renesas Electronics Corporation entered into a Scheme Implementation Agreement to acquire Altium Limited from HSBC Custody Nominees Limited, and others for $5.9 billion on February 14, 2024 Renesas Electronics Corporation Altium Limited develops and sells computer software for the design of electronic products Altium Limited Feb-2024 $5,871 Everbridge operates as a software company that enables customers to anticipate, mitigate, respond to, and recover from critical events Thoma Bravo Discover Fund IV, a fund managed by Thoma Bravo entered into an Agreement and Plan of Merger to acquire Everbridge for $1.6 billion on February 4, 2024 Everbridge Thoma Bravo Feb-2024 $1,639 Procare Software develops and provides software and hardware solutions for the child care industry Roper Technologies reached a definitive agreement to acquire Procare Software from Warburg Pincus, TA Associates and others for approx. $1.9 billion on January 22, 2024 Procare Software Roper Technologies Jan-2024 $1,860 LiveRamp announced definitive agreement to acquire Habu for approximately $200 million on January 17, 2024 Habu develops and operates a data-cleaning software Habu LiveRamp Jan-2024 $200 ANSYS develops and markets engineering simulation software and services for engineers, designers, researchers, and students Synopsys sent a draft agreement to acquire ANSYS from BlackRock, The Vanguard Group and other shareholders on January 16, 2024 ANSYS Synopsys Jan-2024 $33,458 Hewlett Packard Enterprise Company Juniper Networks designs, develops, and sells network products and services worldwide Hewlett Packard Enterprise Company entered into a definitive agreement to acquire Juniper Networks) for $15.4 billion on January 9, 2024 Juniper Networks Jan-2024 $15,396 Fashion GPS, doing business as Launchmetrics, provides a marketing platform and analytics solutions Lectra signed an agreement to acquire a 50.3% stake in Launchmetrics from Bpifrance Investissement SAS and others for approximately $85 million on January 9, 2024 Fashion GPS Lectra Jan-2024 $85 Source: Capital IQ Note: Selected transactions have transaction value greater than $50 million Page 6
