SaaS acquisition report in the second quarter of 2020 From SEG
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The following is the SaaS acquisition report in the second quarter of 2020 From SEG recommended by recordtrend.com. And this article belongs to the classification: SAAS, Investment & Economy, research report.
SEG released “SaaS M & A report in the second quarter of 2020”. Novel coronavirus pneumonia and its market downturn have been reduced by nearly 20%, as the amount of software acquisition transactions (including software as a service, internal deployment, mobile and Internet transactions) is affected by the market downturn. In the second quarter of 2020, the total volume of software M & A fell below 600 for the first time.
SaaS M & a volume fell 30% in the second quarter, with 207 deals announced. In addition, we expect annual trading volume to show a downward trend for the first time in 2020.
In terms of M & a volume, sales and marketing remained the most active product category, with 565 transactions in the past three years.
Healthcare software is the most active vertical industry with 260 transactions in the past three years. The volume of transactions published in this category increased by 68%.
Second in the list is the real estate industry, with 155 transactions.
In the second quarter of 2020, nearly 46% of SaaS sellers focused on the vertical market. Healthcare SaaS was the most active vertical market in the second quarter, accounting for 23.2% of vertical transactions.
Larger companies get the highest EV / revenue multiples, because companies with revenue of $50 million or more report a median EV / revenue multiple of 5.3 times. In addition, nearly 30% of SaaS sellers reported a median EV / revenue multiple of 7 times or more.
Last year, most of SaaS’s M & A targets were SMEs with less than 100 employees. In addition, nearly 45.4% of SaaS sellers were founded in the last 10 years.
On a monthly basis, SaaS M & a volume fell to a low point in May. There were signs of recovery in June and the rebound is expected to continue into July and August.
Novel coronavirus pneumonia is not yet shown to be a factor that often results in SaaS’s multiple valuation multiplier. The median SaaS M & a multiple was in line with previous quarters (EV / revenue was 4.7x).
Strategic and private equity driven deals accounted for an equal share of acquisition activity in the second quarter. Potential buyers include VMware, volaris group, MRI software, Microsoft and Thoma bravo.
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