Enterprise Software Report 2H2023
M&A activity in the Enterprise Software sector has remained strong throughout the turbulence macro environment. We recorded 923 deals in the first half of 2023 – the third highest half-year volume on record – signalling an increase in market confidence.
Across the board, we have noted a drastic decrease in the number of “mega-deals” (>$100 million disclosed transaction value) in favour of smaller, mid-market targets. Another hallmark of this half-year has been the prevalence of strategic acquisitions as interest rates at their apex have forced financial buyers to be more selective with their investments. As a result financial buyer activity in 1H2023 was at its lowest in seven years.
Meanwhile, valuations have remained stable at historically high levels, minorly affected by the market correction in 2022.
Hampleton’s Enterprise Software M&A Report analyses transactions, trends and activity across the Enterprise Applications; Business Intelligence & Customer Analytics; Information Management; Vertical Applications; Infrastructure Management and Design, Testing & Simulation segments.
The above graph covers the period between January 2015 and June 2023. Throughout the 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.