Our 3Q11 Report provides the facts, data and insight you need to keep your finger on the software industry’s pulse. We’ve assessed how public software, Internet and SaaS companies performed in Q3; how they've performed amid the slowdown in IT spending and record levels in Internet retail sales and on-line advertising spend; and how their stock prices and market valuations have responded. Our 3Q11 Report also enumerates and analyzes the software IPOs through 2011, looks at the current IPO pipeline, measures M&A deal volume and exit valuations overall and by software product category.

Report Highlights:

• 3Q11’s median EV/Revenue exit multiple was 2.2x. The median only tells part of the story, how many companies achieved exit multiples above 5.0x? Below 1.0x?
• What product category achieved 17% of the SaaS deal volume and only 2% of the on-premise software deal volume? Find out what category and why?
• Internet transactions have increased 55% and the median Internet exit valuation has nearly doubled over the past year. What Internet product categories are leading the charge?
• 48 SaaS companies were acquired in 3Q11, accounting for 11.9% of all software transactions, up from 2.6% only two years ago. What SaaS product categories are on fire?
• Are investors rewarding revenue growth over EBITDA margin in this macro environment? Our analysis paints a clear and decisive answer.
• How did traditional, on-premise software companies fare in Q3? Is revenue still growing?
• The TTM revenue growth rates of public SaaS companies grew for the fifth consecutive quarter in 3Q11. How are SaaS companies investing to fuel this growth, and what is its EBITDA impact?
• IPOs slowed markedly in 3Q11 after a hot second quarter, but four software companies made it out of the gate. How have these four performed in the volatile market?

3Q 2011 Software Industry Equity Report Topics:

U.S. ECONOMY: SOFTWARE INDUSTRY MACROECONOMICS

IT SPENDING

INTERNET RETAIL SPENDING AND ADVERTISING

PUBLIC SOFTWARE/SAAS/INTERNET COMPANY STOCK PERFORMANCE

PUBLIC SOFTWARE/SAAS/INTERNET COMPANY MARKET VALUATIONS

PUBLIC SOFTWARE COMPANY MARKET VALUATIONS

PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE

PUBLIC SOFTWARE COMPANY MARKET VALUATIONS AND FINANCIAL PERFORMANCE BY PRODUCT CATEGORY

PUBLIC SOFTWARE AS A SERVICE (SAAS) COMPANY MARKET VALUATIONS

PUBLIC SOFTWARE AS A SERVICE (SAAS) FINANCIAL PERFORMANCE

PUBLIC INTERNET COMPANY MARKET VALUATIONS

PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE

PUBLIC INTERNET COMPANY PERFORMANCE BY PRODUCT CATEGORY

INITIAL PUBLIC OFFERINGS

M&A DEAL VOLUME AND SPENDING: ALL INDUSTRY SECTORS

SOFTWARE M&A DEAL VOLUME AND SPENDING

SOFTWARE M&A DEAL CURRENCY

SOFTWARE M&A VALUATIONS

SOFTWARE M&A VALUATIONS BY OWNERSHIP

SOFTWARE M&A VALUATIONS BY VERTICAL AND HORIZONTAL MARKETS

M&A EXIT VALUATIONS BY SOFTWARE PRODUCT CATEGORY

SOFTWARE AS A SERVICE (SAAS) M&A DEAL VOLUME AND VALUATIONS

INTERNET M&A DEAL VOLUME AND VALUATIONS

APPENDIX A: 2Q11 PUBLIC SOFTWARE MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY

APPENDIX B: 2Q11 PUBLIC INTERNET MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY

APPENDIX C: 2Q11 MERGERS AND ACQUISITIONS, SELECT PUBLIC SELLER VALUATIONS

APPENDIX D: 2Q11 MERGERS AND ACQUISITIONS, MOST ACTIVE BUYERS

APPENDIX E: 2Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE INDUSTRY MEGA-DEALS

APPENDIX F: 2Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE-AS-A-SERVICE SELLERS

APPENDIX G: 2Q11 MERGERS AND ACQUISITIONS – DEAL INSIGHT

APPENDIX H: SELECT 2Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS

If you'd like to see additional information or have problems downloading, please contact Kris Beible at: kbeible@softwareequity.com or (858) 509-2800 . If your Report does not download, please turn off your web browser's pop-up blocker.