Our 1Q 2008 Report is a comprehensive analysis of software industry mergers and acquisitions, initial public offerings and filings, and public software company performance during the first quarter of 2008.  The Report also reviews IT spending patterns (an important bellwether of downstream M&A activity), and key economic and technology trends affecting the software equity markets in 1Q08.  Our 1Q08 Report also takes a look at what’s in store for the remainder of 2008, including a forecast of software industry mergers and acquisition activity, IPOs, public software company market valuations, and the underlying economic factors and industry trends.  

Report Highlights:

• Although the median software M&A exit multiple was unchanged in 1Q08, exit multiples for specific software product categories (e.g., (ERP, PLM, Security, Web Analytics, etc.) changed, some markedly, since 4Q07.  Our 1Q Report details the M&A performance of 17 categories.
• Vertical market software companies continue to comprise an unprecedented percentage of total software M&A deal volume, and near-record valuations in 1Q08. Which verticals were most active?
• Nineteen buyers made two or more software company acquisitions in 1Q08.  Who were they, and who did they acquire?
• Just how much more did the largest public software companies pay in Q1(as a median TTM revenue multiple) than their public mid-cap counterparts?  Do private software company sellers with revenue >$20 mm receive significantly higher multiples than smaller ISVs?
• How did public software and Internet companies – the most acquisitive buyers of private software companies – perform financially in 1Q08?  Which software product categories did investors find worthy, and which did they punish?  Has the market downturn impacted public software company acquisitiveness and purchase prices?
• How did the financial performance, and the market valuations, of public SaaS companies measure up in 1Q08?
• What were the software IPOs of 1Q08, how much did they raise, and how did they close out the quarter?  How has the pipeline changed from 2007?  How will investor confidence and current market conditions affect the existing software IPO pipeline?
  

1Q 2008 Software Industry Equity Report Topics:
 
U.S. Economy: Leading Indicators, IT Spending, Employment Outlook, 2008 Forecast
Public Software, SaaS, and Internet Company Financial Performance
Public Software, SaaS, and Internet Company Stock Market Performance
Software Company Initial Public Offerings and Filings
Software Industry Merger and Acquisition Data
Software Industry Merger and Acquisition Trends
Software Industry Merger and Acquisition: Most Active Buyers
Software Industry Merger and Acquisition: Most Active Categories
Software Industry Merger and Acquisition: Purchase Price Multiples by Category
Software Industry Merger and Acquisition: Deal Consideration
Software Industry Merger and Acquisition: Public vs. Private Buyers and Sellers
Software Industry Merger and Acquisition: Transactions by Product Category
Software Industry Merger and Acquisition: Analysis of Select Software Transactions