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1、London|Frankfurt|Stockholm|San Francisco1|13 Enterprise Software M&A Overview 1H 2023Enterprise Software M&A boasts strength and resilienceRising investment in Cloud Services is anticipated topropel growth in the sector,with a forecasted 16.8%growth in 2023 and is anticipated to reach$60.3billion by
2、 the end of the year.It is expected that thisgrowth is driven by business customers demandinghyper-specialised products as a means of tackling theever-changing demands of the contemporary workenvironment.Companies are opting to invest in cloudservices to improve their operational efficiency whilstbo
3、lster growth and productivity.By 2025,it is thoughtthat 85%of all corporate applications will be SaaSmodel based.Akeyhorizontaltechnologyactivelyattractinginvestment is AI and automation.Recent advances indevelopmenthasenabledtheusecasetobeimplemented across all aspects of business.This isespecially
4、 apparent with growing business needs toautomate operations,bolster efficiency and ensurecontinued improvements in productivity.Entering 2023,the macro economic environment isanticipatedtocontinueitsdeceleratinggrowthtrajectory following the heightening of geopoliticaltensions,coupled with post-pand
5、emic inflationary andcentral bank interest rate hikes.Despite this slow ingrowth,thequestionremainsastohowthisphenomena will impact the M&A market.The globalM&A market across all industries in 2022 experienceda slowdown in total deal volume from the record-breaking year of 2021.This slowdown can bee
6、xplained as merely a market normalisation and areturn to an era of increased leverage costs.Enterprise Software M&A,defying macro trend,continues upwardContrary to the general trend,the enterprise softwaremarket had a record-breaking year in terms of dealvolume.Although there as a slowdown in activi
7、ty inthe second half,2022 saw an 8%increase in totaltransactions compared to 2021.Key players-Enterprise Software2|13 Enterprise Software M&A Overview 1H 2023The above graph covers the period between January 2015 and June 2022.Throughout this Enterprise Software M&A report,median“trailing 30-month”m
8、ultiples plotted in the graphs refer to the30-month period prior to and including the half year.M&A summaryShare of private equity deals shrinksPrivate equity acquisitions as a percentage of totalacquisitions have dropped to a six-year low,asinvestors have pulled back in 2022 prompted byhigher inter
9、est rates.This is a reversal of the previousthree-year trend whereby financial sponsors increased.their share of M&A activity compared to strategicacquirers.The figure averaged 41%between 2019 and2021 and dropped to 36%in 2022.The medianprivate equity deal size,however,remains significantlyhigher at
10、$200m compared to$45m from strategics.Total number of deals&valuation multiples in Enterprise Software per half-year,2015-2022Share of private equity deals per year,2015-2022previous half-year.Whilst buyers focus on smallertransactions,total disclosed deal value fell from$153billion to$62 billion,wi
11、th the median transaction valuecoming in at$45m.The half-year saw a rise in the trailing 30-monthrevenue-based valuation multiples,growing to 5.2x,whilst corresponding EBITDA multiple fell from 16.7xin 1H 2022 to 15.7x in 2H 2022.Transaction volume normalisesThe second half of 2022 saw a normalisati
12、on in M&Aactivity in the Enterprise Software sector,with a total822 deals recorded in the half-year.The sectorexperienced a fall in deal volume from the record-breaking frenzy experienced in 1H 2022.Comparativeto 2021,the number of deals grew by 8%,with 1837in 2022 compared to 1702 in 2021.The volum
13、e ofdeals exceeding$1 billion has also fallen compared to1H 2022,with 10 transactions versus 19 in the.597 561 617 499 565 528 647 642 708 657 598 857 749 953 1,015 822 3.6x3.8x3.6x3.6x3.5x3.5x3.5x3.6x3.9x4.0 x4.0 x4.1x4.7x5.0 x5.1x5.2x14.6x14.5x17.4x15.7x15.2x16.0 x16.7x16.6x17.6x17.5x17.0 x15.9x14
14、.8x14.8x16.7x15.7x0.0 x2.0 x4.0 x6.0 x8.0 x10.0 x12.0 x14.0 x16.0 x18.0 x20.0 x-200 400 600 800 1,000 1,200 1,4001H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1H 2022 2H 202226%31%39%41%40%40%43%36%0.0%10.0%20.0%30.0%40.0%50.0%0500100
15、05200022Strategic acquisitionsPE acquisitionsPercent PE3|13 Enterprise Software M&A Overview 1H 2023AcquirersAcquisitionsin 30 monthsThree most recent Enterprise Software acquisitions25P8 Software P8 Software land and property management SaaS and outsourced servicesF
16、lex Applications Flex Applications HR management SaaS and servicesDatapasDatapas Education ERP SaaS 21Evans Evans CaseLoadCaseLoad government case management SaaSArtBinderArtBinder Inc.Inc.art-sector inventory and sales management SaaSEquiplanoEquiplano SistemasSistemas public administration and man
17、agement SaaS20MONACO B.V MONACO B.V workforce management SaaST T-Innova Innova IngenieraIngeniera AplicadaAplicada S.A S.A sports center management SaaSAperoApero Solutions Inc.Solutions Inc.ERP and warehouse management SaaS20Coupa SoftwareCoupa Software AI-based business spend management and ERP Sa
18、aSSMA Technologies Inc.SMA Technologies Inc.Workload automation SaaSAnaplan Inc.Anaplan Inc.business modelling and planning SaaS12Springboard Research Limited Springboard Research Limited AI-powered retail intelligence and shopper analytics SaaSApartment Data Services,LLC Apartment Data Services,LLC
19、 real estate competitive analysis and marketing SaaSProperty Suite New Zealand Property Suite New Zealand real estate CRM SaaS11TimePlanTimePlan Software A/S Software A/S workforce management SaaSuhbuhb consulting AG consulting AG healthcare ERP,controlling and financial SaaS WankoWanko logistics Sa
20、aS11Clockwork IT Limited Clockwork IT Limited field service management SaaSFYB Pty Ltd FYB Pty Ltd information governance and record managementInnovatum Inc.Innovatum Inc.Enterprise RFID labelling and compliance SaaS 11Nextup.ai Inc Nextup.ai Inc messaging system application development tools for Mi
21、crosoft Teams and Slack7pace7pace professional time and project management SaaSArsenaleArsenale Systems,Inc.Systems,Inc.data analysing and reporting software Top acquirers past 30 months The second half of 2022 saw Norway-based Vismamove up to top acquirer with 25 deals closed overthe past 30 months
22、,7 of which were inked in2H2022.Visma has been expanding its geographicreach in Western and Northern Europe,with its mostrecent targets operating in the Benelux,Nordics,andFrance.Canadian-based Volaris came a close second,with 21 deals inked,acquiring Enterprise softwarecompaniesacrossarangeofsubsec
23、torsandgeographies,withacquisitionsinEurope,NorthAmerica and South America.Volaris,backed by their.parent company Constellation Software is the secondmost acquisitive buyer overall,with 8 acquisitions in2H 2022.Constellation,through various subsidiarieshas made a total of 24 acquisitions in 2H 2022.
24、Valsoft and Thoma Bravo both closed 20 deals,targeting firms across various software segments.Theformer made 10 acquisitions in 2H 2022,focusing onenterprise applications.The latter made 2 platformacquisitions in the second half-year.4|13 Enterprise Software M&A Overview 1H 2023$20.0 billion$20.0 bi
25、llion15 SepAdobeAdobe acquires Figma Inc.Figma Inc.$8.2 billion$8.2 billion08 AugVista Equity Partners Vista Equity Partners acquires AvalaraAvalara at 10.6x revenue$7.4 billion$7.4 billion05 SepCVS Health Corporation CVS Health Corporation acquires Signify Health Signify Health at 9.3x revenue and
26、54.2x EBITDA$6.2 billion$6.2 billion12 DecThoma Bravo Thoma Bravo acquires CoupaCoupaSoftwareSoftware at 9.8x revenue$3.7 billion$3.7 billion30 AugRoper Technologies Roper Technologies acquires Frontline EducationFrontline Education$2.4 billion$2.4 billion16 SepStonepeakStonepeak Infrastructure Part
27、ners Infrastructure Partners acquires the Safety business of Safety business of IntradoIntrado CorporationCorporation$2.2 billion$2.2 billion25 AugOpen Text Corporation Open Text Corporation acquires Micro Focus International Micro Focus International at 2.1x revenue and 8.6x EBITDA$2.0 billion$2.0
28、billion12 DecTrimble IncTrimble Inc.acquires TransporeonTransporeon$1.5 billion$1.5 billion17 NovPTC Inc.PTC Inc.acquires ServiceMaxServiceMax Inc.Inc.at 11.2x revenueGlobal M&A Enterprise Software market cools in 2H 2022 following a deal spike in 1H 2022Enterprise Software sector turning increasing
29、ly appealingfor acquisitive investors despite fears of an extended market slowdown SaaS-based recurring revenue streamsoffer acquirers ever-safer bets during a market downturnPrivate equity buyers reduce pace of acquisitions in Enterprise Software,reversing a three-year upward trend:financial buyers
30、 decrease their share to 36%of deal volume in 2022Western Europe continues growth in 2H 2022 in terms of deal volume with targets in the region accounting for 28%of all deal activity Rapid shift to M&A“friend-shoring”transactions between rival countries has dropped,meanwhile deals between allied cou
31、ntries has more than offset that impactLARGEST DISCLOSED DEALS OF 2H2022Top trends in Enterprise SoftwareVast majority of deals transacted at below$100mOnly 3.5%of Enterprise Software transactions announced value above$100mWhile large transactions make the headlines,smaller deals constitute a majori
32、ty of M&A activity5|13 Enterprise Software M&A Overview 1H 2023Data breakdown geography and subsector Headquarters of Enterprise Software targetsHeadquarters of acquirers of European targetsLAST 30 MONTHSIn the second half of 2022,36%of all EnterpriseSoftware deals targeted a firm in the EnterpriseA
33、pplications segment.Meanwhile,around 17%of alldeals targeted Information Management companies.Regional divide amongst targets and their acquirers hasremained consistent with 63%of all targets over past30 months being North America-based.Europeantargets are mostly acquired by European acquirers.Enter
34、prise ApplicationsEnterprise resource planning,desktop productivity,SCM,CRM andSalesforce automationBusiness Intelligence&Customer AnalyticsAutomation analysis,retail analytics,marketing business intelligence,social media listening&analyticsInformation ManagementDocumentmanagement,datamigration&ware
35、housing,collaboration,capture&imaging,e-discovery,enterprise networkingVertical Applications*Software specific to the legal,automotive,financial,oil&gas,agriculture,insurance,education,transportation,or healthcaresectorsInfrastructure ManagementApp lifecycle management,development tools,business pro
36、cessmanagement,integration,systems management,network and servervirtualisationDesign,Testing&SimulationBIM,CAD,manufacturer modelling,EDA,testing and simulation,visual effects&animation,3D printingBreakdown of number of deals by subsector in 1H2022Europe55%North America41%RoW4%Europe28%North America
37、63%RoW9%*Targets in the Vertical Applications category represent providers of vertical-specific software.If a target meets this definition as well as the definition ofanother category(i.e.,Enterprise Applications,Infrastructure Management,etc.),we have selected to categorise it as Vertical Applicati
38、on.36%17%16%16%8%7%6|13 Enterprise Software M&A Overview 1H 2023Subsector overviewTotal deal volume in Enterprise Applications subsectorcame in 11%higher for the year 2022 versus 2021.2H2022 was down from the peak of hyperactivityexperienced in the subsector between mid-2021 andmid-2022,settling at
39、a very health volume of 300transactions in 2H 2021.The share of financial buyers in 2H 2022 remainsconstant with the first half-year,remaining at 40%ofacquisitions.With rising financing costs,private equityfirms are increasingly selective despite vast amounts ofdry powder.The disclosed median transa
40、ction value inthis subsector has increased to$47m,with privateequity inflating average deal prices,with 78%ofdisclosed deal values exceeding$100m.This evidencesan overall trend of private equity opting to acquiremore established companies to mitigate risk withinportfolios.The trailing 30-month media
41、n revenuemultiple came in at 5.1x,with 50%of deals showing arevenue multiple between 2.2x and 9.55x.The lowestrevenue multiple disclosed was 0.3x,while the highestwas 23.3x.The trailing 30-month median EBITDAmultiple came in at 22.0 x.0.0 x10.0 x20.0 x30.0 x40.0 x50.0 x-50 100 150 200 250 300 350 40
42、0 4501H20152H20151H20162H20161H20172H20171H20182H20181H20192H20191H20202H20201H20212H20211H20222H20220 x10 x20 x30 xEnterprise Applications23.3x0.3x74.3x2.0 x5.1x22.0 xTrailing 30-month median revenue multipleTrailing 30-month median EBITDA multiple11%uplift11%uplift29%27%26%13%5%ERP-Non HRCRMERP-HR
43、 ManagementSCMOtherSubsector classificationThe Enterprise Applications subsector can be dividedinto the five segments below.Amongst these,non-HRERPremainslargestat29%ofallEnterpriseApplication deals.7|13 Enterprise Software M&A Overview 1H 2023AIandautomationprovidersremainattractive acquisition pro
44、positionsThe vast operational efficiency benefits of streamliningprocesses through the implementation of AI andautomation has translated into M&A activity,withc.40%of target companies in this subsector deployingAI technology.Acquirers are aiming to bolster AIofferings and aggrandise market share in
45、the rapidlygrowing AI tech market,which according to GrandView Research is projected to reach a market value of$734 bn by 2027.InNovember,Canadian-basedThomsonReutersCorporation,aproviderofonlinebusinessinformation,acquired SurePrep.Headquartered inCalifornia,US,the target company provides AI-basedt
46、ax workflow automation SaaS,APIs,related mobileapplications and outsourced tax filing services foraccounting and tax business in the US.The total dealamount equaled$500m.Thomson Reuters acquisitionof SurePrep was enacted as a component of acorporate strategy to empower tax and accountingprofessional
47、s to simplify workflows and drive insights.Enterprise Applications(cont.)ACQUIREDDec 2022Not disclosedACQUIRED2H 2022Not disclosedACQUIREDNov 2022$500mACQUIREDAug 2022$45mCanadian-based Kinaxis,a provider of supply chainmanagement SaaS,acquired MPO in a$45m deal.TheDutch target provides AI-based clo
48、ud-native supplychain SaaS internationally,with features to enhancevisibility,digital order management,as well as variousother management tasks.MPO enables Kinaxis todeliver end-to-end supply chain concurrency.Privateequity-backedfirmsstrengthenenterprise software footholdUSfirm,Aptean,recipientofst
49、rategicgrowthinvestment from TA and Insight Partners in October,has kicked off a buy-and-build scheme to accelerateinnovation and global expansion.Aptean operates atthe intersection of ERP,CRM and supply managementSaaS.Aptean initiated this expansion strategy inDecember,withtheacquisitionofMistralIn
50、formatique.The French headquartered companyoffers ERP and CRM SaaS and solutions designed fordealers and distributors and dealers of agricultural andconstructionequipment.With500clients,theacquisition enables Aptean to bolster their customerbase in Western Europe.BCS BV,Dutch firm backed by Main Cap
51、ital Partners,have made three Dutch,HR software acquisitions in2H 2022,consolidating their market-leading position intheNetherlands.ThefirmacquiredApployedNederland,a provider of human capital managementSaaS for SMEs in July 2022.Additionally,TasperReward,aHRbenefitsmanagementSaaS,andMediSoft Dossie
52、r Manager,a provider of employeeabsenteeism management SaaS,were acquired inOctober 2022.8|13 Enterprise Software M&A Overview 1H 2023Subsector overviewTotal deal volume in Business Intelligence&CustomerAnalytics subsector has seen a 15%increase in 2022compared to 2021.2H 2022 was down from thepeak
53、of hyperactivity experienced in the year prior,with transaction volume standing at a healthy 127deals.Valuation multiples in the space have also increased:thetrailing30-monthmedianrevenuemultiplereached a new high of 6.1x with 50%of transactionsshowing a sales multiple between 3.1x and 10.7x.Meanwhi
54、le,the trailing 30-month median EBITDAmultiple came in at 22.0 x,remaining constant from 1H2022,with 50%of the transactions showing a multiplerange between 8.3x and 26.6x.Constellation subsidiary increases deal sizeCanadian headquartered Volaris Group acquired thesituational intelligence solutions a
55、ssets of Israeli firm,Cognyte Software,in October 2022.The carve-outenables Volaris to acquire an AI-enabled open source-based situational intelligence analytics SaaS,servingboth businesses and governments internationally.Thedeal totaled$47.5 million in cash,with an additional$35 millioninpotential
56、earnout,dependenton.0.0 x10.0 x20.0 x30.0 x40.0 x50.0 x0.0 x5.0 x10.0 x15.0 x20.0 x25.0 xBusiness Intelligence&Customer Analytics 6.1x20.0 x0.1xTrailing 30-month median revenue multipleTrailing 30-month median EBITDA multiple42.2x3.8x22.0 xachievingunspecifiedperformance milestones.Thisincreaseindea
57、lamount signals a changeinstrategyofVolarisparentcompany,ConstellationSoftware,with an increased ticketsizecomparativetohistoric deal amounts.-20 40 60 80 100 120 140 160 180 2001H20152H20151H20162H20161H20172H20171H20182H20181H20192H20191H20202H20201H20212H20211H20222H2022ACQUIREDOct 2022$47.5 mill
58、ion(Situational Analytics Solutions assets)SAP acquired AI-based data analysis SaaSIn July,SAP acquired Askdata,a provider AI andnatural language processingACQUIREDJul 2022UndiscloseddataintelligenceandanalysisSaaSandon-premisesoftwaretobusinessesglobally.Theacquisition enhances SAPsproduct offering
59、s,enablingcustomers to make moreinformed decisions.9|13 Enterprise Software M&A Overview 1H 20230.0 x10.0 x20.0 x30.0 x40.0 x50.0 x60.0 x0 x10 x20 x30 x40 xInformation Management 36.4x0.7x4.3x51.3x7.4x12.0 xDropbox bolsters product offering throughacquisitionIn December 2022,Dropbox acquired FormSwi
60、ft,adocument creation provider,with business forms andagreement management SaaS,SDKs and related APIsfor individuals and businesses in the US.FormSwiftenables users to build,edit,approve and share.andprovidespremiumdatainsights.Theacquisition proves to besynergistic for GoCardless,facilitatingopen-b
61、ankingconnectivity,allowing theenhancementofopenBaaS(Banking-as-a-Service)Trailing 30-month median revenue multipleTrailing 30-month median EBITDA multipleACQUIREDDec 2022$95 millionSubsectoroverviewThe information management segment continues toattract attention,with a stable 135 deals recorded int
62、he space in 2H2022.The trailing 30-month median revenue multiple stoodat 4.3x in 2H2022 and the highest multiple rose to36.4x.Half of all transactions were valued between2.2x and 10.1x.The trailing 30-month median EBITDA multiple camein at 12.0 x,with 50%of all deals announced being inthe 8.3x to 22
63、.4x range.The lowest EBITDA multipledisclosed was 7.4x,while the highest was 51.3x.-50 100 150 200 250 300 350 4001H20152H20151H20162H20161H20172H20171H20182H20181H20192H20191H20202H20201H20212H20211H20222H2022documents and PDFs.Thecompany was acquired in a$95 million cash deal,withtheintentionofbei
64、ngintegrated into Dropboxsproduct offerings,providingan end-to-end agreementworkflow experience.GoCardless acquires data insights firmUK FinTech GoCardless acquired Latvian firm SiaNordigenSolutionsinJuly2022.SiaNordigenprovides online banking data insights and integrationSaaS and related open APIs
65、for European businessesoperating in the financial sector.The companybolsters access to open-banking,account informationto an array of B2B customers,including otherFinTechs and partners.ACQUIREDJuly 2022Undisclosed10|13 Enterprise Software M&A Overview 1H 20230 x10 x20 x30 x40 x50 x0 x10 x20 x30 x40
66、xVertical ApplicationsTrailing 30-month median revenue multipleTrailing 30-month median EBITDA multiple34.6x0.4x5.2x40.4x4.6x14.5xHealthcare vertical software persists as the categorywithhighestM&Aactivityconsistentwithpriorquarters.An increasing number of deals target hospitalitysoftware amid a gra
67、dual return to pre-pandemicconsumer behaviour.Investment,Finance and Insurance verticals have ralliedto become the category with the second highest M&Aactivity,includingVeriskAnalyticsacquisitionofSwedish InsureTech,Mavera in December 2022.Increasingnumberofdealsintheeducationsubvertical,after the p
68、andemic exposed massive roomfor improvement in the vertical.Healthcare remains most active verticalSubsectoroverviewVertical application software deal volume has slowedslightly since the 1H 2022,bounce back,with 143transactions inked in 2H 2022.Overall,however,2022proved to an active year for dealma
69、kers in thesubsector,with 295 deals completed;a jump of 29%compared to 2021.The trailing 30-month medianrevenue multiple stood at 5.2x,with 50%of all deals.announced being in the 2.5x to 9.4x range.The lowestwas 0.4x,while the highest was 34.6x.The trailing 30-month median EBITDA multiple was14.5x,w
70、ith majority of all disclosed multiples being inthe 8.6x to 22.3x range.The lowest was 4.6x,whilethe highest was 40.4x.142 155 191 181 144 157 181 163 163 144 156 210 120 109 152 143 -50 100 150 200 2501H20152H20151H20162H20161H20172H20171H20182H20181H20192H20191H20202H20201H20212H20211H20222H2022Au
71、to4.2%Education13.3%Govt/Public Sector Healthcare21.0%Investment,Finance and Insurance17.5%Real Estate 4.2%Hospitality4.9%Other 30.1%11|13 Enterprise Software M&A Overview 1H 20230.0 x10.0 x20.0 x30.0 x0.0 x5.0 x10.0 x15.0 x20.0 x25.0 x30.0 xIn September 2022,Hg Capital-backed Access Group,acquiredU
72、K-headquarteredPay360.Thetargetcompany provides an AI-based online paymentsprocessingSaaS,portal,APIsandsoftwaredevelopment kits to an international customer base.Thecompanyoffersextensivepayment-relatedproduct offerings,including payments management,reporting and analytics,integrations,fraud and ri
73、skmanagement,payment security,payment collection,e-invoicing and debt management.Access Groups rationale was orientedtowardsexpanding their expertise and capabilities to new.markets,as well as seeing the synergistic opportunityInfrastructure Management 25.6x1.3x5.2x28.0 x6.1x12.0 xTrailing 30-month
74、median revenue multipleTrailing 30-month median EBITDA multiplePrivate Equity-backed Access Group bolster payment infrastructure through acquisitionSubsectoroverviewTheInfrastructureManagementsegmenthasexperienced a normalisation in the number of deals in2022 compared to 2021,with 144 versus 193tran
75、sactions recorded(a 25%reduction YoY),with 59deals recorded in 2H 2022.The trailing 30-month median revenue multiple camein at 5.2x,with 50%of all deals announced being in.the 4.6x to 9.6x range.The lowest revenue multipledisclosed was 1.3x,while the highest was 25.6x.The trailing 30-month median EB
76、ITDA multiple roseto 12.0 x,with the majority of all deals being in the8.1x to 16.4x range.The lowest EBITDA multiple was6.1x,while the highest was 28.0 x.73 66 87 64 66 54 72 75 69 67 53 83 74 108 85 59 -20 40 60 80 100 1201H20152H20151H20162H20161H20172H20171H20182H20181H20192H20191H20202H20201H20
77、212H20211H20222H2022tointegratePay360sproductofferingsintotheir portfolio.The totaldeal amount equated toa$179 million cash deal,withtheEV/EBITDAvaluationmultiplestanding at 12.2xACQUIREDSep 2022$179 million12|13 Enterprise Software M&A Overview 1H 20230.0 x5.0 x10.0 x15.0 x20.0 x0 x5x10 x15x20 x25x
78、FOG Software acquired Ricardo PLCs softwarebusiness unit in August for$21 million.The UK-basedtargetcompanyprovidesAI-basedautomotivesimulationdesignSaaSforpropulsionandtransmission design to an international customer base.The division offers features for 3D engine analysis,finite element,pre and po
79、st-processing complexphysical systems modelling,3D and 2D simulationdesign process and an array of additional productuses.The EV/revenue multiple equated to 1.8x.Design,Testing&Simulation16.1x1.4x5.4xTrailing 30-month median revenue multipleConstellation subsidiary acquires automotive simulation des
80、ign SaaS carve-outInsufficientEBITDA-multipledatapoints for thissubsectorTrailing 30-month median EBITDA multipleSubsector overviewM&A in the Design,Testing&Simulation segmentsurged in the past 18 months,with total volume seeinga 46%climb between 1H 2021 and 2H 2021,and dealflow remaining constant d
81、uring 2022.Total deals in2H 2022 have remained stable,with 59 completedtransactions.The trailing 30-month EV/S multiple has dropped fromthe 6.3x high experienced in 1H 2022 to 5.4x in thesecondhalf-year.50%ofalldisclosedrevenuemultiples ranging between 2.0 x and 7.3x.The record-high M&A activity in
82、recent half-years isexplained by companies transitioning towards totalsimulation and digital twins in the face of rising costs oftestingwithphysicalprototypes.Recentmacroeconomic issues such as high inflation anddysfunctionalsupplychainsworldwidehaveaccelerated this transition.22 27 22 17 23 22 38 3
83、0 27 29 33 42 41 60 59 59 -5 10 15 20 25 30 35 40 45 50 55 60 651H20152H20151H20162H20161H20172H20171H20182H20181H20192H20191H20202H20201H20212H20211H20222H2022ACQUIREDAug 2022$21 million(Software business unit)13|13 Enterprise Software M&A Overview 1H 2023SelectionofHampletonEnterpriseSoftwaretrans
84、actionsAboutHampletonPartnersHampleton Partners is at the forefront of international mergers and acquisitions advisory for companies with technology at their core.Hampletons experienced deal makers have built,bought and sold scores of fast-growing tech businesses and provide hands-on expertise and u
85、nrivalledinternational advice to tech entrepreneurs and the companies who are looking to accelerate growth and maximise value.With offices in London,Frankfurt,Stockholm and San Francisco,Hampleton offers a global perspective with sector expertise in:Autotech&Mobility,IoT,AI,Fintech,Insurtech,Cyberse
86、curity,VR/AR,Healthtech,Digital Marketing,Enterprise Software,IT Services,SaaS&Cloud and E-Commerce.Miro ParizekPrincipal PStandardised and individual solutions against financial and white-collar crime and for risk management and monitoring,analysis,and reportingacquired byConclusion&contactsDigital
87、 banking software for retail,corporate and investment management banks in Central and Eastern Europemerged intobacked byacquired byComponent content management system and services for technical documentation,collaboration and delivery softwareacquired byData visualisationSaaS allowing personalisatio
88、n of a visual value proposition for life science companiesacquired byZero-loss archiving and backup solutions for mission-critical data in the healthcare,public sector and industrial verticals in Germany acquired byGlobal software company offering an AI,NLP-based knowledge management and self-servic
89、e cloud-native platformacquired bybacked byLeading provider of SAP cybersecurity and access governance software targeting national SMEs and international blue-chip customersLeading holistic omnichannel digital commerce software solutions provider in the DACH regionraised growth capital fromInteresti
90、ngly,Enterprise Software M&A has maintained its high pace despite theturbulent macro environment,with a record-breaking 1837 deals in 2022.Dealvolume in 2H 2022 normalised from its peak level recorded in the 12-monthsprior,with the return of increased leverage costs acting as a brake to overheatingv
91、olume.Inflation,supply chain strain and continued geopolitical conflict have placedpressures on both tech giants and small vendors.Meanwhile cash-rich acquirersare deploying capital reserves to acquire smaller firms to bolster product offeringsand consolidate market share.Private equity firms are en
92、acting roll-up strategies tochallenge incumbent firms and build market leading companies on a global scale.With vast reserves of dry powder,private equity have reduced the quantity ofplatform acquisitions,but have increased cheque sizes to mitigate portfolio risk.Looking forward,2023 has begun with
93、a range of exciting tech M&A deals inkedby strategic and financial buyers alike.We anticipate this deal flow to remainrobust both in volume and value this year as technology vendors continue totarget tech differentiators to help them serve an increasingly selective customerbase;and financial buyers
94、focus their efforts on promising targets with solidforecasts and proven business models.acquired byIoT data collection and unification platform for industrial devices,providing significant quantities of data,enabling analytics,monitoring and maintenanceJoe ThomasonAHampleton provides independent M&A
95、 and corporate finance advice to owners of Autotech&Mobility,Internet,IT Services,Digital Commerce,and Softwarecompanies.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 d
96、ata provided by industry recognised sources.Data and information for this 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 cont
97、ains general information only and Hampleton Ltd.,is not,by means of this publication,rendering professional advice or services.Beforemaking any decision or taking any action that may affect your finances or your business,you should consult a qualified professional adviser.Hampleton Ltd.shall not ber
98、esponsible for any loss whatsoever sustained by any person who relies on this publication.2023.For more information please contact Hampleton Ltd.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