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Hampleton Partners Report Reveals 1,015 Enterprise Software M&A Deals in First Half of 2022

London, UK – 7 September 2022. The latest Enterprise Software M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals the sector experienced a frenzy of merger and acquisition (M&A) activity during the first six months of 2022, with a total of 1,015 deals recorded, breaking the previous record of 953 deals in the second half of 2021.

Miro Parizek, founder and principal partner at Hampleton Partners, said: “M&A in the Enterprise Software sector has remained remarkably strong. It’s defying the overall decline in global M&A, which decreased by 27 percent year-on-year due to geopolitical and macroeconomic events that have shaken market confidence, such as the armed conflict in Ukraine, disrupted supply chains, and central banks raising interest rates to manage inflation.

Enterprise Software Computer and Smartphone

“The increasing demand for cloud-based services continues to be a major driver of deals, as companies modernize and expand their operations to capitalize on strong market demand. In addition, buyers recognize the significant recurring revenue streams from software-as-a-service (SaaS) models that many target companies possess, providing a level of protection during economic downturns.”

The median valuation multiples for the first half of 2022 saw a significant increase: the trailing 30-month revenue multiple reached a record-breaking 5.2x, while the corresponding EBITDA multiple soared to another record of 20.3x, surpassing pre-pandemic levels.

Nineteen Enterprise Software transactions closed above $1 billion in the first half of 2022, while five percent were sold for over $100 million. However, the majority of Enterprise Software transactions were below $100 million.

Top Enterprise Software acquirers in the past 30 months
The first half of 2022 witnessed Norway-based Visma become the top acquirer with 21 deals, closely followed by Canadian-based Volaris with 20 deals focused on acquiring Enterprise Application and Vertical Application targets.

Visma – 21 acquisitions including Teamleader NV, Mandu, Woffu Job Organizer
Volaris – 20 acquisitions including Alemba, Sunrise Software, Datapro Inc
ThomaBravo – 19 acquisitions including Anaplan, Circle Cardiovascular Imaging, UserZoom Technologies

Largest disclosed Enterprise Software deals of the first half of 2022
$61.0 billion – Broadcom acquired VMware at 5.3x revenue and 20.6x EBITDA
$13.2 billion – Vista Equity Partners acquired Citrix Systems at 5.2x revenue and 28.0x EBITDA
$13.1 billion – Intercontinental Exchange acquired Black Knight at 11.2x revenue and 24.8x EBITDA

The future of Enterprise Software M&A
Miro Parizek continued: “The Enterprise M&A market is very attractive now for sellers as well as buyers.

“Smaller vendors in niche sectors are facing inflation, challenges in talent acquisition, and increasing competition from tech giants. Many of them are taking advantage of the appealing M&A market in Enterprise Software to sell to a trade buyer, merge, or partner with a private equity firm to defend or establish leadership positions on a global scale.

“Other companies are seeking to target technology firms in artificial intelligence, machine learning, and blockchain that can help them address supply chain issues.

“Overall, these factors, coupled with the need to quickly implement solutions to seize the disproportionately high market demand, are expected to drive an increase in enterprise software M&A. However, business leaders must closely monitor the evolving levels of political and economic uncertainty and continuously review their buying and selling decisions.”

Hampleton’s Enterprise Software M&A Report provides an analysis of transactions, trends, and activity across the segments of Enterprise Applications; Business Intelligence & Customer Analytics; Information Management; Vertical Applications; Infrastructure Management; and Design, Testing & Simulation.

Download the full Hampleton Partners’ Enterprise Software M&A Market Report for the second half of 2022: https://www.hampletonpartners.com/reports/enterprise-software-report/.

ENDS

For interview requests, a copy of the report or photography, please contact:
Jane Henry
Marylebone Marketing
jane@marylebonemarketing.com
+44 789 666 8155

Note to Editors:
Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com).

About Hampleton Partners
Hampleton Partners is a leading international mergers and acquisitions and corporate finance advisory firm for technology companies. Its experienced deal makers have built, bought, and sold over 100 fast-growing tech businesses, providing hands-on expertise and unrivaled advice to tech entrepreneurs and companies looking to accelerate growth and maximize value.

With offices in London, Frankfurt, Stockholm, and San Francisco, Hampleton offers a global perspective with sector expertise in: Artificial Intelligence, Autotech, Cybersecurity, Digital Commerce, Enterprise Software, Fintech, Healthtech, HR Tech, Insurtech, and IT & Business Services.

Follow Hampleton on LinkedIn and Twitter.

For more information, visit https://www.hampletonpartners.com.



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