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1、M&A market report 1H 2024 EnterpriseSoftware1|17 Enterprise Software M&A Overview 1H 2024Enterprise Software M&A retains momentumseverely impact other sectors that rely on complex manufacturing processes.Enterprise Software companies also enjoy recurring and predictable revenue streams thanks to the

2、 prevalent SaaS model,which is naturally appealing to investors and acquirers concerned about ROI.Its notable there has been a rise in the trailing 30-month median EBITDA multiple between 1H2023 and 2H2023.Acquirers willingness to pay relatively high EBITDA multiples indicates that profitable Enterp

3、rise Software assets remain attractive to buyers who are drawn to safer investments in a time of continuing geopolitical and economic uncertainty.Back in 1H2023,the global Enterprise Software M&A market markedly inched up close to the level seen at the highest peak in activity in early 2022.The most

4、 recent data reveal that transaction volumes remain consistently higher than anything seen prior to the pandemic.Moreover,when it comes to M&A,2023 was the second-most active year on record.These key takeaways underscore how inherently resilient the Enterprise Software sector is in the face of marke

5、t headwinds.Key reasons include mass workplace digitalization and the indispensability of enterprise tools to businesses looking to maximise operational efficiency amid macroeconomic challenges.Enterprise Software companies also tend to require relatively low capital expenditures and arent generally

6、 affected by supply chain disruptions which can The graph above covers the period between July 2016 and December 2023.Throughout this Enterprise Software M&A report,median“trailing 30-month”multiples plotted in the graphs refer to the 30-month period prior to and including the half year.Total number

7、 of deals&valuation multiples in Enterprise Software per half-year,2H2018-2H20233.7x4.0 x4.1x4.0 x4.3x4.9x5.0 x5.2x5.2x5.2x4.4x16.6x17.4x17.3x16.9x17.0 x16.3x16.3x18.7x18.2x16.7x17.0 x0200400600800100012002H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transaction volumeMedian EV/R

8、(trailing 30 months)Median EV/EBITDA(trailing 30 months)2|17 Enterprise Software M&A Overview 1H 2024M&A summaryFollowing record highs during the pandemic,EV/revenue multiples in Enterprise Software have shown the initial signs of returning to pre-pandemic levels in 2H2023.This has been driven prima

9、rily by a drop in multiples paid by strategic acquirers,in marked contrast to the multiples paid by private equity acquirers,which have remained comparatively robust.This gap has widened ever since the tail end of the pandemic in 2H2021.In terms of EV/EBITDA multiples paid,strategic and PE buyers hi

10、storically diverged until the gap temporarily closed during the M&A boom of the pandemic.Since 2H2022 the divergence has returned,with PE buyers paying significantly higher EBITDA multiples.This reflects an appetite among financial buyers for profitable opportunities.Transaction volume Share of priv

11、ate equity deals per year,2018-2023In terms of transaction volumes,the share of private equity buyers has decreased significantly since the pandemic,hovering around 30%for the past threePrivate Equity valuations in Enterprise Software outperform those by strategic acquirers once again0.0 x1.0 x2.0 x

12、3.0 x4.0 x5.0 x6.0 x7.0 xStrategicsPrivate Equity0.0 x5.0 x10.0 x15.0 x20.0 x25.0 xStrategicsPrivate Equity60%61%63%65%60%57%59%66%68%69%71%40%39%37%35%40%43%41%34%32%31%29%0200400600800100012002H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023StrategicsPrivate EquityMedian EV/R(trai

13、ling 30 months)Median EV/EBITDA(trailing 30 months)reporting periods.At the same time,while financial buyers pay higher valuations than strategic acquirers,they also carefully cherry-pick their investments.3|17 Enterprise Software M&A Overview 1H 2024AcquirersAcquisitionsin 30 monthsThree most recen

14、t Enterprise Software acquisitions45SilverfinSilverfin NV NV Accounting compliance&workflow automation SaaSQuadernoQuaderno Tax compliance SaaSLaudusLaudus SASASME ERP SaaS38EuroFormEuroForm A/SA/S Printing fleet management SaaSICL Inc.ICL Inc.Supply chain visibility&invoice auditing SaaSUptake Tech

15、nologies,Inc.Uptake Technologies,Inc.Industrial data analytics SaaS25MEDHOST Inc.MEDHOST Inc.EHR management softwareDexcoDexco CorporationCorporation Legal practice&ERP management softwareLiberty Source,LLC Liberty Source,LLC Educational assessment&instruction SaaS25UnikUnik System Design A/S System

16、 Design A/S Property&legal management SaaSPatchmanagerPatchmanager B.V.B.V.IT infrastructure management SaaSXentialXential B.V.B.V.Document creation&management SaaS21DelaconDelacon Pty Ltd Pty Ltd Call tracking&speech analytics softwareNOVENTI GroupNOVENTI Group Care management softwareRAF Technolog

17、y,IncRAF Technology,Inc.Data capture&verification software163T Logistics Limited 3T Logistics Limited Transportation management SaaSApparel Business Systems,LLCApparel Business Systems,LLC Apparel industry ERP SaaStrend SWM EDVtrend SWM EDV-BeratungBeratung GmbH&Co.KGGmbH&Co.KG Manufacturing&distrib

18、ution ERP SaaS14HypergeneHypergene AB AB CPM&ERP softwareBlueMatrixBlueMatrix I LLC I LLC Investment research&publishing softwareEQS Group AG EQS Group AG Compliance&investor relations management SaaS12EngageSmartEngageSmart,Inc.,Inc.Customer engagement&payments SaaSGatekeeper Gatekeeper Vendor&cont

19、ract lifecycle management SaaSTRG Screen TRG Screen Enterprise subscription spend&usage management SaaSTop acquirers past 30 months Acquirers focus on Enterprise ApplicationsThe second half of 2023 saw Visma overtake Valsoft as the top Enterprise Software acquirer.The Oslo-based company has been par

20、ticularly prolific when it comes to Enterprise Applications,with firms in this subsector making up 80%of its acquisitions.The segment is the most sought-after within Enterprise Software by a considerable margin,with Vertical Applications trailing at a distant second place.Notably,both Harris and Vol

21、aris are part of thepublicly listed Constellation Software group.With acombined 46 transactions,the two companies affiliatedwith this divesified software group even outpeformedVisma.The second-most prolific acquirer,Valsoft,has asimilar business model to Constellation Software butoperates as a priva

22、te company.Furthermore,5 of the8 top acquirers are either PE buyers or PE-backed.4|17 Enterprise Software M&A Overview 1H 2024$26.5bn$26.5bn21 SeptCisco Systems Inc.acquires Splunk Inc.at 7.5x EV/revenue$6.1 bn$6.1 bn31 JulFrancisco Partners Management LP and TPG Capital LP a cquire New Relic Inc.at

23、 6.2x EV/revenue$3.5 bn$3.5 bn18 DecClearlake Capital Group LP and Insight Venture Management LLC acquire Alteryx Inc.at 4.8x EV/revenue$2.5 bn$2.5 bn23 OctVista Equity Partners Management LLCacquires EngageSmart,Inc at 10.3x EV/revenue$2.3 bn$2.3 bn18 DecIBM acquires the webMethods and StreamSets d

24、ivisions of Software AG$2.3 bn$2.3 bn28 NovRocket Software,Inc.acquires the appl.modernization and connectivity business of Open Text Corp at 4.6x EV/revenue$1.5 bn$1.5 bn06 SeptThoma Bravo LP acquires NextGen Healthcare,Inc.at 2.3x EV/revenue$1.4 bn$1.4 bn19 JulTPG Capital LP acquires Nextech Syste

25、ms$1.3 bn$1.3 bn08 AugRoper Technologies Inc.acquires Syntellis Performance Solutions LLC$1.1 bn$1.1 bn05 OctMetropolis Technologies,Inc.acquires SP Plus Corporation at 1.9x EV/revenue and 14.0 x EV/EBITDADespite macroeconomic headwinds,transaction volumes remain at peak levels with 2023 closing as

26、the secondthe second-most active year most active year on recordon recordThe focus on small and midfocus on small and mid-cap M&A market cap M&A market remains strong,with 82%of all disclosed transactions in 2H2023 falling in the sub$500m EV rangeUbiquitous demand for Enterprise Software solutions a

27、nd the relative security of SaaSSaaS-based based recurring revenue streamsrecurring revenue streams are among the incentives which make deals in this sector safer bets for acquirersThe valuation gap between strategic and financial The valuation gap between strategic and financial buyers widensbuyers

28、 widens,both in terms of revenue and EBITDA-based valuations financial buyers continue to pay the most attractive multiplesThe increasingly wide adoption of AI technology increasingly wide adoption of AI technology has become evident in transaction activity as 30%of transactions closed in 2H2023 tar

29、geted a company that uses AI,up from 15%at the beginning of the pandemicTOP 10 LARGEST DEALS OF 2H2023Top trends in Enterprise SoftwareWhile large transactions make the headlines,smaller deals below 100m constituted the majority of M&A activityWhile large transactions make the headlines,smaller deal

30、s below 100m constituted the majority of M&A activity34%34%36%36%30%30%32%32%35%35%47%47%44%44%17%17%28%28%38%38%39%39%48%48%38%38%31%31%28%28%27%27%27%27%33%33%23%23%23%23%32%32%26%26%24%24%28%28%21%21%20%20%21%21%23%23%25%25%24%24%17%17%24%24%17%17%30%30%28%28%21%21%14%14%17%17%27%27%4%4%9%9%3%3%7

31、%7%8%8%9%9%3%3%6%6%8%8%5%5%6%6%8%8%2%2%8%8%6%6%10%10%11%11%10%10%6%6%3%3%10%10%14%14%13%13%11%11%11%11%12%12%8%8%2H20171H20182H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023 1b5|17 Enterprise Software M&A Overview 1H 2024Europe32%North America59%ROW9%Data breakdown geography and su

32、bsector Headquarters of Enterprise Software targetsHeadquarters of acquirers of European targetsLAST 30 MONTHSOver the past 30 months,37%of all Enterprise Software deals targeted a firm in the Enterprise Applications segment.Meanwhile,around 20%of all deals targeted vertical-focused applications.The

33、 regional split among targets and their acquirers has remained consistent with 59%of all targets over past 30 months being North America-based.European targets are mostly acquired by European acquirers.Enterprise ApplicationsEnterprise resource planning,desktop productivity,SCM,CRM and Salesforce au

34、tomationVertical Applications*Software specific to the legal,automotive,financial,oil&gas,agriculture,insurance,education,transportation,healthcare sectorsBusiness Intelligence&Customer Analytics Automation analysis,retail analytics,marketing business intelligence,social media listening&analyticsInf

35、ormation ManagementDocument management,data migration&warehousing,collaboration,capture&imaging,e-discoveryInfrastructure ManagementApp lifecycle management,development tools,business process management,integration,systems management,network and server virtualisation,enterprise networkingDesign,Test

36、ing&SimulationBIM,CAD,manufacturer modelling,EDA,testing and simulation,visual effects&animation,3D printingBreakdown of number of deals by subsector in the last 30 months*Targets in the Vertical Applications category represent providers of vertical-specific software.If a target meets this definitio

37、n as well as the definition of another category(i.e.,Enterprise Applications,Infrastructure Management,etc.),we have selected to categorise it as Vertical Application.Europe61%North America35%ROW4%37%20%16%13%9%5%6|17 Enterprise Software M&A Overview 1H 2024Subsector overviewFollowing a spike in the

38、 number of deals during Covid-19,deal-making in the Enterprise Applications is still Enterprise ApplicationsIn 2H2023,the trailing 30-month median revenue multiple plummeted to 3.9x,while the trailing 30-month median EBITDA multiple dropped to 15.7x following a lengthy period of high EBITDA multiple

39、s during the pandemic.However,these values only depict a mid-point amongst a broader range and depend on a multitude of factors,including growth rates,profit margins,geography and domain expertise.While the trailing 30-month median revenue multiple came in at 3.9x,50%of all deals were in the 1.7x to

40、 8.7x range with a minimum of 0.2x and a maximum of 42.2x.The trailing 30-month median EBITDA .8.7x1.7x8.4x3.9x15.7x27.2xmultiple stood at 15.7x,with 50%of all deals in the 8.4x to 27.2x range.The minimum EBITDA multiple paid out was 2.0 x,while the maximum was 99.8x.above pre-pandemic levels,with 2

41、96 deals inked in the second half of 2023.3.3x4.1x4.5x4.4x4.6x5.2x5.4x5.4x5.4x5.8x3.9x15.0 x19.6x18.6x17.3x19.7x25.5x22.8x23.0 x23.0 x22.4x15.7x0501001502002503003504004505002H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transaction volumeMedian EV/R(trailing 30 months)Median EV/E

42、BITDA(trailing 30 months)0.0 x2.0 x4.0 x6.0 x8.0 x10.0 x12.0 xTEV/LTM Revenue0.0 x5.0 x10.0 x15.0 x20.0 x25.0 x30.0 x35.0 x40.0 xTEV/LTM EBITDA42.2x99.8x7|17 Enterprise Software M&A Overview 1H 2024Vista-backed Gainsight acquires an LMSIn July,Gainsight the Vista-backed company which leverages AI to

43、 enable businesses to drive customer retention and analyze trends announced its acquisition of Northpass,the New Jersey-based digital customer education platform.The deal,struck for an undisclosed amount,is the first example of a Customer Success company making an acquisition within the Learning Man

44、agement System(LMS)space.Enterprise Applications(cont.)The Enterprise Applications subsector can be divided into the five segments below.In 2H2023,the largest three segments among these,in terms of transaction volume,were non-HR-focused Enterprise ResourcePlanning(ERP)software(30%),followed by Custo

45、mer Relationship Management(CRM)software and workforce management and HR-focused ERP(both 26%).Overall,ERP represents over half of all deal activity in the subsector.Proportion of Enterprise Applications deals by segment in the last 30 monthsalready expansive Enterprise Software portfolio,and the ac

46、quirer intends to now“bolster EngageSmartsposition as leader in the vertical software and payments space.”.ACQUIREDJul 2023Undisclosed30%26%26%14%4%ERP-Non-HRCRMERP-Workforce Management&HRSCMOtherACQUIREDOct 2023$3.6mbEVGainsight has stressed its belief that education is a key part of“a well-rounded

47、 Digital Customer Success strategy”and says the deal has created the only end-to-end Customer Success platform in the market.Vista takes EngageSmart privateIn October,it was announced that Vista,one of the most prolific buyers in the Enterprise Software sector,would be acquiring EngageSmart,the Mass

48、achusetts-based customer engagement and payments SaaS company.In one of the largest deals this reporting period,Vista paid around$2.5 billion for a 65%stake in EngageSmart,taking the firm private after two rocky years as a public company.This adds to Vistas8|17 Enterprise Software M&A Overview 1H 20

49、24Subsector overviewSecond only to the all-time high seen in 1H2023,transaction volume in 2H2023 remains robust in theVertical Applications In 2H2023,the trailing 30-month median revenue multiple remained stable at 4.7x,with 50%of all deals in the 2.8x to 7.6x EV/revenue range,and the lowest multipl

50、e being 0.5x and the highest 34.6x.Meanwhile,the trailing 30-month median EBITDA multiple fell to 13.1x while 50%of all disclosed EBITDA multiples in Vertical Software deals came in somewhere between 8.4x and 18.6x,with the lowest at 4.0 x and the highest at 54.2x.In addition,lower EBITDA multiples

51、with fairly stable revenue multiples indicate a shift towards targets with higher profit margins.0.0 x1.0 x2.0 x3.0 x4.0 x5.0 x6.0 x7.0 x8.0 x9.0 x10.0 xTEV/LTM Revenue7.6x2.8x4.7x3.1x3.6x4.2x3.6x3.8x4.4x4.6x4.6x5.3x5.0 x4.7x17.5x18.2x18.6x17.3x17.5x18.7x18.2x17.6x19.5x14.9x13.1x0501001502002503002H

52、20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transaction volumeMedian EV/R(trailing 30 months)Median EV/EBITDA(trailing 30 months)0.0 x5.0 x10.0 x15.0 x20.0 x25.0 xTEV/LTM EBITDA8.4x13.1x18.6x34.6x54.2xVertical Applications segment.Altogether,2023 saw the most vertical software tr

53、ansactions in a single calendar year.9|17 Enterprise Software M&A Overview 1H 2024Vertical Applications(cont.)Healthcare remains most active verticalHealthcare vertical software persists as the category accounting for the highest M&A activity consistent with prior reporting periodsInvestment&Finance

54、 continues to rank as the category with the second-highest M&A activityEducation is the category with the third-highest M&A activity,with momentum still going strong after the pandemic revealed massive room for digital improvements in the segmentAI leveraged for cancer diagnosticsOne of the big mome

55、ntum drivers within the highly active healthcare segment is AI and its potential to optimize how clinicians tackle major diseases.In December,Lunit a healthtech company that deploys AI to more efficiently detect and treat cancer entered into an agreement to acquire Volpara Health.Based in New Zealan

56、d,Volpara is a leading developer of AI-powered software for breast cancer diagnostics,with its mammography solutions operational in over 2,000 US medical sites.The$193 million deal therefore massively expands Lunits reach in the American market,while incorporating Volparas vast set of cancer data in

57、to its own systems will,in the words of the companys CEO,“supercharge Lunits AI capabilities”.ACQUIREDSept 2023UndisclosedACQUIREDDec 2023$187m EVA similarly significant deal was announced in September,with Renovaro Biosciences signing a definitive agreement to acquire GEDi Cube,a Dutch provider of

58、AI-based cancer diagnostics SaaS solutions.For Renovaro,a motivating factor for the deal was the prospect of synergising GEDi Cubes AI capabilities with its own wealth of clinical trial data,thereby accelerating the development of trailblazing treatments.Healthcare21%Investment&Finance13%Education12

59、%Real Estate5%Insurance5%Auto4%Hospitality4%Government/Public Sector3%Legal3%Transportation2%Other28%10|17 Enterprise Software M&A Overview 1H 2024Subsector overviewBusiness Intelligence&Customer Analytics is notable as the only Enterprise Software segment in whichBusiness Intelligence&Customer Anal

60、ytics3.5x4.7x4.0 x4.0 x5.4x4.5x5.0 x5.7x5.9x5.7x6.1x12.0 x13.4x14.5x13.4x15.3x13.4x16.4x22.0 x22.0 x26.6x26.6x0204060801001201401601802002H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transaction volumeMedian EV/R(trailing 30 months)Median EV/EBITDA(trailing 30 months)In 2H2023,th

61、e trailing 30-month median revenue multiple increased to 6.1x,with 50%of all deals in the 3.1x to 11.3x EV/revenue range,and the lowest multiple being 0.4x and the highest 20.0 x.Meanwhile,the trailing 30-month median EBITDA multiple remained high at 26.6x,following a low double-digit lull throughou

62、t Covid.50%of all disclosed EBITDA multiples in Information Management deals came in somewhere between 18.1x and 49.0 x,with the lowest at 10.0 x.0.0 x2.0 x4.0 x6.0 x8.0 x10.0 x12.0 x14.0 xTEV/LTM Revenue11.3x3.1x6.1x0.0 x10.0 x20.0 x30.0 x40.0 x50.0 x60.0 xTEV/LTM EBITDA18.1x26.6x49.0 x20.0 x156.7x

63、multiples are trending upwards.11|17 Enterprise Software M&A Overview 1H 2024Business Intelligence&Customer AnalyticsClearlake/Insight make biggest acquisition in the Business Intelligence/Analytics segmentIn December,Clearlake Capital Group and Insight Venture Management announced a$4.4 billion tak

64、eover of data science company Alteryx.Headquartered in California,Alteryx offers an end-to-end,cloud-based analytics platform that provides organisations across a wide range of sectors with AI-powered tools for data preparation,reporting and predictive analysis.Alteryx went public with an IPO in 201

65、7 but saw its share price tumble after reporting sluggish revenue growth.This was put down to macroeconomic conditions slowing the pace of new client acquisition,alongside stiff competition from industry behemoths like Oracle and Microsoft.It did,however,make Alteryx an appealing acquisition target,

66、with Clearlake/Insight reportedly beating out another private equity firm to seal the mammoth multi-billion dollar deal to take Alteryx private again.Compliance SaaS firms prove popular with acquirersA multitude of firms specialising in compliance management SaaS solutions have been snapped up by ac

67、quirers during the current reporting period.In December,data privacy management company Osano completed its strategic acquisition of WireWheel,which provides data privacy and compliance management SaaS for US businesses.The deal,struck for an undisclosed amount,allows Osano to fold WireWheels capabi

68、lities into its own platform,enhancing its offerings to enterprise clients.A notable private equity deal in the space is Thoma Bravos takeover of EQS Group,a leading purveyor of SaaS compliance and investor relations tools.Announced in November,the$435 million deal will allow EQS to better position

69、itself to meet demand for compliance solutions,which is expected to rise in the wake of complex regulatory pressures such as the EU Whistleblowing Directive.12|17 Enterprise Software M&A Overview 1H 2024Subsector overviewFollowing peak levels of transaction activity during Covid-19,deal-making in In

70、formation ManagementInformation ManagementIn 2H2023,the trailing 30-month median revenue multiple fell to 5.3x,with 50%of all deals in the 2.5x to 11.2x EV/revenue range,and the lowest multiple being 1.3x and the highest 20.0 x.Meanwhile,the trailing 30-month median EBITDA multiple climbed to 17.2x

71、following a low double-digit lull throughout Covid.50%of all disclosed EBITDA multiples in Information Management deals came in somewhere between 17.1x and 21.3x,with the lowest at 6.8x and the highest at 27.2x.11.2x2.5x5.3xsoftware remains solidly above pre-pandemic levels with 110 deals inked in t

72、he second half of 2023.17.1x17.2x21.3x2.7x2.7x2.7x3.1x3.3x3.8x4.0 x5.3x6.0 x6.4x5.3x21.3x18.3x20.0 x17.2x10.8x10.8x10.3x12.0 x11.2x16.8x17.2x0204060801001201401602H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transaction volumeMedian EV/R(trailing 30 months)Median EV/EBITDA(traili

73、ng 30 months)0.0 x2.0 x4.0 x6.0 x8.0 x10.0 x12.0 x14.0 xTEV/LTM Revenue0.0 x5.0 x10.0 x15.0 x20.0 x25.0 x30.0 xTEV/LTM EBITDA20.0 x13|17 Enterprise Software M&A Overview 1H 2024Information Management(cont.)Atlassian enhances product portfolio with Loom purchaseIn October,software giant Atlassian ann

74、ounced what would be the biggest Information Management acquisition in this reporting period:the$975 million takeover of video messaging platform Loom.Boasting 25 million worldwide users,Loom enables the swift,AI-driven recording of video clips which can be shared with friends and colleagues without

75、 the need to switch applications.Atlassian views this type of asynchronous video messaging as the“next evolution of team collaboration.”Adding Loom to its suite of enterprise solutions,which include tools like Jira and Confluence,.AI-based image recognition companies become major acquisition magnets

76、There has been a raft of deals targeting companies specializing in AI-based image recognition.One example is the acquisition of BRIT Systems by InsiteOne.Announced in November,the deal has brought together two companies with considerable overlap,with both InsiteOne and BRIT Systems specialising in h

77、ealthcare image archiving SaaS solutions.The value of the deal was not disclosed.Another example is Wenglor Sensoric Groups takeover of Deevio,a provider of visual inspection software which improves quality control in the food,pharma,automotive and precision tooling industries.ACQUIREDNov 2023$975 m

78、illionACQUIREDSept 2023Undisclosedis part of Atlassians aggressive growth strategy,which has seen the inking of dozens deals over the years in productivity SaaS and team collaboration.Deevios AI expertise was a big factor in the acquisition,whose financial terms were undisclosed.14|17 Enterprise Sof

79、tware M&A Overview 1H 2024Subsector overviewAfter an increased level of deal activity during Covid,current levels of transaction activity are in line withInfrastructure ManagementIn 2H2023,the trailing 30-month median revenue multiple dipped at 4.0 x,with 50%of all deals in the 2.2x to 5.8x EV/reven

80、ue range,and the lowest multiple being 0.7x and the highest 22.0 x.Meanwhile,the trailing 30-month median EBITDA multiple stayed steady at 16.3x.50%of all disclosed EBITDA multiples in Infrastructure Management deals came in somewhere between 8.5x and 23.8x,with the lowest at 7.3x and the highest at

81、 51.3x.5.8x2.2x4.0 xthose seen prior to Covid,with 75 deals recorded in the second half of 2023.8.5x16.3x23.8x5.1x4.7x4.8x5.3x5.1x5.0 x5.0 x5.0 x5.0 x4.9x4.0 x19.5x19.8x20.0 x12.9x11.3x9.6x9.4x12.8x10.3x16.3x16.3x0204060801001202H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transa

82、ction volumeMedian EV/R(trailing 30 months)Median EV/EBITDA(trailing 30 months)0.0 x1.0 x2.0 x3.0 x4.0 x5.0 x6.0 x7.0 x8.0 xTEV/LTM Revenue0.0 x5.0 x10.0 x15.0 x20.0 x25.0 x30.0 xTEV/LTM EBITDA22.0 x51.3x15|17 Enterprise Software M&A Overview 1H 2024Infrastructure Management(cont.)Cisco makes bigges

83、t ever acquisition in its historyIn September,Cisco announced one of the blockbuster deals of the year its purchase of California-based cybersecurity firm Splunk.Cisco is the most active acquirer in the Infrastructure Management segment,and the Splunk purchase represents a milestone due to the sheer

84、 size of the deal.At$28 billion,it is the single biggest transaction in the companys long history,reflecting Splunks industry-leading capabilities in AI-enabled enterprise security analytics.Splunks threat detection capabilities,which include out-of-the-box and customizable machine learning features

85、,have won major clients including Siemens,Papa Johns and Singapore Airlines.According to Cisco,the deal should bring in$4 billion in annual recurring revenue,and“drive the next.Francisco Partners and TPG negotiate New Relic acquisitionThe other major transaction in this segment was announced in July

86、,with private equity firms Francisco Partners and TPG agreeing to purchase New Relic in a$6.5 billion deal.Based in California,New Relic is a web tracking and analytics company whose cloud platform enables websites and apps to track user interactions and assess how well their entire digital infrastr

87、ucture is performing.The deal had originally been anticipated earlier during the year,but the initial bid by the PE firms was reportedly rejected as inadequate.It was then reported that the firms walked away from the deal,only to return a few months later with a lower offer which New Relic accepted

88、in the wake of ACQUIREDJun 2023Not disclosedACQUIREDSept 2023$26.5b EVgeneration of AI-enabled security and observability”,with Splunks cutting-edge capabilities complementing Ciscos already vast portfolio.sluggish business development.New Relic has since hailed the financial windfall for its potent

89、ial to accelerate its growth and enhance its product capabilities.16|17 Enterprise Software M&A Overview 1H 2024Keysight makes biggest buy in the segmentIn November,Keysight Technologies developer of electronic device design,simulation and modelling SaaS announced its acquisition of a controlling bl

90、ock of shares in ESI Group,and its intention to launch a tender offer for the remaining shares.ESI Group is a French developer of digital simulation and virtual prototyping software used by businesses to visualize everything from Subsector overviewFollowing elevated levels of deal activity during Co

91、vid,M&A activity in the Design,Testing&Simulation segment remains high.Design,Testing&SimulationMedian valuations remain steadyIn 2H2023,the trailing 30-month median revenue multiple stayed steady at 2.9x,with 50%of all deals inCalendar year 2023 came in as the third most active year on record,but a

92、ctivity levels in 2H2023 signal that deal activity may return back to normal.the 2.0 x to 3.9x range,and a minimum of 1.4x and maximum of 6.9x.There were not enough disclosed EBITDA multiples to paint an accurate picture of EBITDA multiples typically paid out in this sector.ACQUIREDJan 2023Not discl

93、osed4.6x4.1x3.3x3.2x3.2x3.4x3.4x5.4x4.5x2.9x2.9x01020304050602H20181H20192H20191H20202H20201H20212H20211H20222H20221H20232H2023Transaction volumeMedian EV/R(trailing 30 months)0.0 x1.0 x2.0 x3.0 x4.0 x5.0 x6.0 xTEV/LTM Revenue3.9x2.0 x2.9x6.9xheavy machinery to next-generation automotive tech.The$52

94、1 million deal is the biggest recorded transaction in the segment in the current reporting period.17|17 Enterprise Software M&A Overview 1H 2024About Hampleton PartnersHampleton Partners is at the forefront of international mergers and acquisitions advisory for companies with technology at their cor

95、e.Hampletons experienced deal makers have built,bought and sold scores of fast-growing tech businesses and provide hands-on expertise and unrivalled international advice to tech entrepreneurs and the companies who are looking to accelerate growth and maximise value.With offices in London,Frankfurt,S

96、tockholm and San Francisco,Hampleton offers a global perspective with sector expertise in:Autotech&Mobility,IoT,AI,Fintech,Insurtech,Cybersecurity,VR/AR,Healthtech,Digital Marketing,Enterprise Software,IT Services,SaaS&Cloud and E-Commerce.Miro ParizekPrincipal P Conclusion&contactsOverall M&A activ

97、ity in Enterprise Software has,despite persistent macroeconomic uncertainties,maintained a healthy deal volume for the year 2023.However,the momentum had slowed across all sub-sectors during the second half.Valuations are down in the two high-volume sub-sectors,application software and vertical soft

98、ware,while stable or up in the infrastructure management,information management,BI&customer analytics sub-sectors.The appeal of Enterprise Software companies to buyers,long based on factors such as the reassuring prospect of recurring SaaS revenue streams,has been bolstered by the advent of AI tools

99、.Its notable that many of the key deals in the sector,such as Ciscos unprecedented splurge on Splunk,have targeted Enterprise Software firms whose platforms are driven by AI.While the share of private equity buyers remains lower than before,financial buyers are showing a willingness to pay considera

100、bly higher multiples than strategic acquirers;however,have been highly focused on profitability.Deal volumes have begun to pick up in the first half of 2024 while the jury is still out on how valuation metrics will develop during the year.Selection of Hampleton Enterprise Software transactionsStanda

101、rdised and individual solutions against financial and white-collar crime and for risk management and monitoring,analysis,and reportingacquired byDigital banking software for retail,corporate and investment management banks in Central and Eastern Europemerged intobacked byacquired byComponent content

102、 management system and services for technical documentation,collaboration and delivery softwareacquired byData visualisation SaaS allowing personalisation of a visual value proposition for life science companiesacquired byZero-loss archiving and backup solutions for mission-critical data in the heal

103、thcare,public sector and industrial verticals in Germany acquired byGlobal software company offering an AI,NLP-based knowledge management and self-service cloud-native platformacquired bybacked byLeading provider of SAP cybersecurity and access governance software targeting national SMEs and interna

104、tional blue-chip customersacquired byIoT data collection and unification platform for industrial devices,providing significant quantities of data,enabling analytics,monitoring and maintenanceHampleton provides independent M&A and corporate finance advice to owners of Autotech&Mobility,Internet,IT Se

105、rvices,Digital Commerce,and Software companies.Our research reports aim to provide our clients with current analysis of the transactions,trends and valuations within our focus areas.Data Sources:We have based our findings on data provided by industry recognised sources.Data and information for this

106、publication was collated from the 451 Research database,a division of The 451 Group.For more information on this or anything else related to our research,please email the address provided below.Disclaimer:This publication contains general information only and Hampleton GmbH,is not,by means of this p

107、ublication,rendering professional advice or services.Before making any decision or taking any action that may affect your finances or your business,you should consult a qualified professional adviser.Hampleton GmbHshall not be responsible for any loss whatsoever sustained by any person who relies on

108、 this publication.2024.For more information please contact Hampleton GmbH.Hampleton produces regular reports on M&A activity in the following sectorsHampleton produces regular reports on M&A activity in the following sectorsHR TechInsurtechIT&Business ServicesAR/VRArtificial Intelligence Autotech&MobilityCybersecurityDigital CommerceEnterprise SoftwareFintechHealthtechYou can subscribe to these reports at http:/ FranciscoFollow Follow HampletonHampleton