Our 2009 Annual Report is a comprehensive analysis of software industry mergers and acquisitions, initial public offerings and venture capital investments of the past year.  The Annual Report also analyzes public software company financial and stock market performance and identifies key trends affecting the software equity markets in 2009.  And of course, our 2009 Annual Report takes a look at the year ahead, including a forecast of software industry M&A and IPO activity and valuations in 2010, and the underlying economic factors and industry trends. 
 
Additionally, we surveyed of 226 of the largest software companies in North America to gain firsthand insight into their acquisition strategies for 2010.  The detailed answers from many of the movers and shakers in the software industry will surprise you. 
 
The 2009 Software Industry Equity Report includes data, analyses and insight indispensable to software industry entrepreneurs, investors, executives, analysts, investment bankers and professional advisors.  Please visist http://www.softwareequity.com/purchase_annualreport.aspx to download a copy.

 
Report Highlights:

• How did public software companies – the most acquisitive buyers of private software companies – perform financially in 2009?  How did specific software sectors fare during the market downturn and subsequent upswing?  How has the economic recovery impacted their M&A mindset, and purchase prices?
• How did median exit valuations vary by software sector (Engineering/PLM, Security, etc.) in 2009?  Looking at 11 different categories, why the spread from 0.7x TTM revenue to 3.0x TTM revenue? 
• Will vertical market software companies remain in demand by enterprise players seeking to penetrate specific SME markets and by larger verticals anxious to consolidate their markets in 2010?  What verticals were most active in 2009?
• How did pure play SaaS provider exit multiples compare to software M&A valuations overall in 2009?  How did investors treat public SaaS companies in 2009?  How did the significant reduction in IT spending affect SaaS providers?
• Sixty-eight buyers made two or more software company acquisitions in 2009.  Who were they, what did they acquire, and how much did they pay?
• The percentage of public buyers increased sharply in 2H09.  What was the driving factor?  What will private equity firms do with the public software companies they’ve taken private if the IPO market remains quiescent, revenue growth retracts further and leveraged debt payments become unduly burdensome?

• Will some PE firms divest while others go bargain hunting?
• What really happened to software M&A valuations and transaction volumes throughout 2009 and what does 2010 hold in store?  Find out directly from those responsible for driving these trends.
• Just how much does median exit valuation vary by size of buyer?  Conversely, do larger private software companies ($20 million + sellers) receive significantly higher multiples than smaller ISVs? 
• How did venture capitalists treat the software industry in 2009?  Are early stage companies attracting more funding?  What were the software IPOs of 2009 and what happened to the pipeline that was once full a year ago?  How did these new entrants close the year?  How will investor confidence and market conditions in 2010 affect the software IPO pipeline?
• We scoured 592 corporate announcements made in 2009 expressing interest in acquiring software companies.  Seventy-three companies made two or more such announcements.  Who are they and what specifically are they looking for?

2009 Annual Software Industry Equity Report Topics:
 
U.S. Economy: Leading Indicators, IT Spending, Employment Outlook, 2010 Forecast
Public Software Company Financial & Stock Market Performance
Public SaaS Company Financial & Stock Market Performance
Public Internet Company Financial & Stock Market Performance
Software Company Initial Public Offerings
Software Company Venture Capital Investments
The Buyers Speak: Software Equity Group's 2010 M&A Survey
Software Industry Merger & Acquisition Data
Software Industry Merger & Acquisition Trends
Software Industry Merger & Acquisition: Most Active Buyers
Software Industry Merger & Acquisition: Most Active Categories
Software Industry Merger & Acquisition: Purchase Price Multiples by Category
Software Industry Merger & Acquisition: Deal Consideration
Software Industry Merger & Acquisition: Public vs. Private Buyers and Sellers
Software Industry Merger & Acquisition: Transactions by Product Category
Software Industry Merger & Acquisition: Analysis of Select Software Transactions

 

About Software Equity Group (SEG)
 
Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors.  Founded in 1992, the firm has counseled, represented and guided some 1,800 private software companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel.  SEG has advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges.  Software Equity Group also represents several of the world's leading private equity firms, and was recently ranked among the top ten investment banks worldwide for application software mergers and acquisitions.  For additional information, please call 858-509-2800 or e-mail: info@softwareequity.com.