SEG Publishes Its August 2011 Monthly Flash Report

Our complimentary August 2011 Flash Report assesses the financial and market performance of more than 250 publicly traded software, SaaS, and Internet companies, sorted by product category. The Report also highlights a selection of the most recent software M&A transactions.

Notable buyers in the month of July were: Oracle, RealPage, Google, Amazon, Autodesk, Adobe, Riverbed, Twitter, Tencent, Electronic Arts, Zynga, Qualcomm, PayPal and BMC Software.

Download the report by visiting:  http://www.softwareequity.com/research_flash_reports.aspx

 

SEG Releases its 2Q11 Software Industry Equity Report

SEG’s complimentary 2Q11 Software Industry Equity Report is now available for download. Our 2Q11 Report provides the facts, data and insight you need to keep your finger on the software industry’s pulse.

Our 2Q11 Report provides the facts, data and insight you need to keep your finger on the software industry’s pulse.  We’ve assessed how public software, Internet and SaaS companies performed in Q2; how they’ve benefited from the rebound in IT spending and record levels in Internet retail sales and on-line advertising spend; and how their stock prices and market valuations have responded.  Our 2Q11 Report also enumerates and analyzes the software IPOs in the second quarter, looks at the current IPO pipeline, measures M&A deal volume and exit valuations overall and by software product category.
Report Highlights:
  • 2Q11 marked the sixth consecutive quarter the software industry’s benchmark median exit EV/Revenue multiple was above 2.1x TTM revenue.  Just how high did it climb?  Which three product categories had more than twice the median M&A valuations of those with the lowest M&A returns?
  • Internet transactions have increased 43% year-over-year, and the median Internet valuation has tripled since 4Q10.  What Internet subsectors are leading the charge?
  • 45 SaaS companies were acquired in 2Q11, accounting for 11.3% of all software transactions, up from only 2.6% two years ago.  What SaaS product categories are on fire?
  • Mobile infrastructure and application software led all other M&A product categories in the second quarter.  What technology titans are now aggressively pursuing the mobile space?
  • How did on-premise software companies perform in Q2?  Have they benefited from increased IT enterprise spending, and how have their market valuations and stock prices fared as a result?
  • TTM revenue growth rates accelerated in 2Q11 for most software, Internet and SaaS companies.  Did it come at the expense of EBITDA margins?
  • How much has cloud computing impacted the financial performance and EV/Revenue multiples of public software, SaaS and Internet providers?
  • Nine software/SaaS/Internet companies were newly listed in Q2, and 13 have gone public since January 1, includihng serveral very high profile entrants.  Who are they?  What were their IPO valuations?  How did their stock prices perform by the close of the quarter?
2Q 2011 Software Industry Equity Report Topics:
U.S. ECONOMY:  SOFTWARE INDUSTRY MACROECONOMICS
IT SPENDING
INTERNET RETAIL SPENDING AND ADVERTISING
PUBLIC SOFTWARE/SAAS/INTERNET COMPANY STOCK PERFORMANCE
PUBLIC SOFTWARE/SAAS/INTERNET COMPANY MARKET VALUATIONS
PUBLIC SOFTWARE COMPANY MARKET VALUATIONS
PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE
PUBLIC SOFTWARE COMPANY MARKET VALUATIONS AND FINANCIAL PERFORMANCE BY PRODUCT CATEGORY
PUBLIC SOFTWARE AS A SERVICE (SAAS) COMPANY MARKET VALUATIONS
PUBLIC SOFTWARE AS A SERVICE (SAAS) FINANCIAL PERFORMANCE
PUBLIC INTERNET COMPANY MARKET VALUATIONS
PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE
PUBLIC INTERNET COMPANY PERFORMANCE BY PRODUCT CATEGORY
INITIAL PUBLIC OFFERINGS
M&A DEAL VOLUME AND SPENDING: ALL INDUSTRY SECTORS
SOFTWARE M&A DEAL VOLUME AND SPENDING
SOFTWARE M&A DEAL CURRENCY
PRIVATE VS. PUBLIC BUYERS
SOFTWARE M&A VALUATIONS
SOFTWARE M&A VALUATIONS BY OWNERSHIP
SOFTWARE M&A VALUATIONS BY VERTICAL AND HORIZONTAL MARKETS
M&A EXIT VALUATIONS BY SOFTWARE PRODUCT CATEGORY
SAAS M&A TRANSACTIONS
INTERNET M&A TRANSACTIONS
APPENDIX A: 2Q11 PUBLIC SOFTWARE MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY
APPENDIX B: 2Q11 PUBLIC INTERNET MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY
APPENDIX C: 2Q11 MERGERS AND ACQUISITIONS, SELECT PUBLIC SELLER VALUATIONS
APPENDIX D: 2Q11 MERGERS AND ACQUISITIONS, MOST ACTIVE BUYERS
APPENDIX E: 2Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE INDUSTRY MEGA-DEALS
APPENDIX F: 2Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE-AS-A-SERVICE SELLERS
APPENDIX G: 2Q11 MERGERS AND ACQUISITIONS – DEAL INSIGHT
APPENDIX H: SELECT 2Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS