Software M&A Update

4Q 2019


  • The fourth quarter of 2019 saw the fewest number of deals closed in over three years in the Software sector
  • Overall deal volume in 2019 was down 17% from 2018
  • 2019 lower middle-market transaction volume in the $0 - 50MM EV tranche decreased while the larger $50-500MM EV tranche saw a meaningful rise in transaction volume from 2018
  • Strategic buyers have been more active than PE investors over the last six years, but we saw a comeback by PE in 2019, especially in total capital invested
  • The acquisition of Carbon Black by VMware in an approximately $2.3 billion deal represented the largest deal in Q4
  • Stock prices trended higher through 2019 while valuation multiples slightly declined

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