Enterprise Software M&A Market Sees Second-Most Active Year On Record, Says Hampleton Partners Report

The latest Enterprise Software M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals that, despite a slowdown in the second half of the year, there were 1,881 deals involving companies in the sector in 2023, making it the second-most active year on record.

The report also reveals that strategic buyers are continuing to account for a higher proportion of deals in the sector, with the share of private equity acquirers having dipped since the pandemic. However, private equity acquirers are paying significantly higher EV/revenue and EBITDA multiples than their strategic counterparts. 

The robust activity levels within Enterprise Software underscore the resilience of the sector in the face of recent macroeconomic headwinds. Mass workplace digitalisation and the predictable revenue streams associated with the SaaS business model are two of the biggest factors driving demand for companies in this space, while the widespread leveraging of AI innovations also plays a major part.

Miro Parizek, Founder & Senior Partner at Hampleton Partners, said: “The appeal of Enterprise Software companies to buyers, long based on factors such as the reassuring prospect of recurring SaaS revenue streams, has been bolstered by the advent of AI tools. It’s notable that many of the key deals in the sector, such as Cisco’s unprecedented splurge on Splunk, have targeted Enterprise Software firms whose platforms are driven by AI.” 

Acquirers within the Enterprise Software sector have been highly prolific over the past 30 months. The top three players by deal numbers include:

• Visma – 45 acquisitions, including Silverfin NV (accounting compliant and workflow automation SaaS), Quaderno (tax compliance SaaS), and Laudus SA (SME ERP SaaS) 
• Valsoft – 38 acquisitions, including EuroForm A/S (printing fleet management SaaS), ICL Inc (supply chain visibility and invoice auditing SaaS), and Uptake Technologies (industrial data analytics SaaS) 
• Harris – 25 acquisitions, including MEDHOST (EHR management software), Dexco Corporation (legal practice and ERP management software), and Liberty Source LLC (educational assessment and instruction SaaS) 

Download the full Hampleton Partners Enterprise Software M&A Market Report 1H2024, which looks at specific deals closed within six Enterprise Software subsectors: Enterprise Applications, Vertical Applications, Business Intelligence & Customer Analytics, Information Management, Infrastructure Management, and Design, Testing & Simulation at www.hampletonpartners.com/reports/enterprise-software-report/

Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com); Capital IQ, CB Insights, Gartner, IDC and more. 

Hampleton Partners advises technology company owners on M&A and growth financing transactions with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders and provide hands-on expertise and unrivalled advice to entrepreneurs looking to sell their companies, partially exit, or to accelerate growth.

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

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