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Hampleton Partners Report Reveals Record Growth in Enterprise Software M&A Despite Shrink in Private Equity Investment

London, UK – 8 March 2023. The latest Enterprise Software M&A report from Hampleton Partners reveals that the sector maintained its high-growth trajectory in 2022 with a record-breaking 1,837 deals, an 8% increase compared to the previous year’s 1,702 deals. This growth is particularly impressive considering the challenging macro environment and a slowdown in deal activity during the second half of 2022.

Decrease in private equity deals

Hampleton Partners Enterprise Software Report Cover

In 2022, private equity acquisitions accounted for 36% of total acquisitions, the lowest level in six years. This decrease can be attributed to higher interest rates, which reversed the trend of the previous three years. Between 2019 and 2021, financial sponsors’ share averaged 41%. However, the median deal size for private equity acquisitions remained significantly higher at $200 million compared to strategic buyers who paid an average of $45 million.

The number of deals exceeding $1 billion also declined, with only 10 transactions in the second half of 2022, compared to 19 in the first half.

Miro Parizek, founder and principal partner at Hampleton Partners, said: “Inflation, supply chain strain, and geopolitical conflicts have put pressure on both tech giants and small vendors. However, the enterprise software sector has continued its record-breaking performance in 2022.

“Cash-rich acquirers are using their capital reserves to acquire smaller firms, strengthen their product offerings, and consolidate their market share.

“Private equity firms are adopting roll-up strategies to challenge incumbents and build leading global companies. With significant reserves of dry powder, private equity has reduced the number of platform acquisitions but has increased the size of the deals to mitigate portfolio risk.”

Top Enterprise Software acquirers in the past 30 months:

The second half of 2022 saw Norway-based Visma emerge as the top acquirer with 25 deals closed in the past 30 months, seven of which were completed in the second half of 2022. Other top acquirers include:

– Visma – 25 acquisitions including P8 Software, Flex Applications, and Datapas
– Volaris – 21 acquisitions including Evans CaseLoad, ArtBinder, and Equiplano Sistemas
– Valsoft – 20 acquisitions including Monaco, T-Innova, and Ingeniera Aplicada and Apero Solutions
– Thoma Bravo – 20 acquisitions including Coupa Software, SMA Technologies, and Anaplan

Largest disclosed Enterprise Software deals in the second half of 2022:

– $20.0 billion – Adobe acquired Figma Inc.
– $8.2 billion – Vista Equity Partners acquired Avalara at 10.6x revenue
– $7.4 billion – CVS Health Corporation acquired Signify Health at 9.3x revenue

Hampleton’s Enterprise Software M&A Report provides in-depth analysis of transactions, trends, and activity across various segments, including Enterprise Applications, Business Intelligence & Customer Analytics, Information Management, Vertical Applications, Infrastructure Management, and Design, Testing & Simulation.

Download the full Hampleton Partners’ Enterprise Software M&A Market Report 1H2023: https://www.hampletonpartners.com/reports/enterprise-software-report/.

ENDS

Contact:

Jane Henry
Marylebone Marketing
jane@marylebonemarketing.com
+44 789 666 8155

Note to Editors:
Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com).

About Hampleton Partners

Hampleton Partners is a leading international M&A and corporate finance advisory firm specializing in technology companies. They provide strategic guidance and transaction services to technology company owners in M&A and growth financing scenarios.

Hampleton’s experienced deal makers offer unrivaled expertise and advice to entrepreneurs who are looking to sell their companies, partially exit, or accelerate growth. With offices in London, Frankfurt, Stockholm, and San Francisco, Hampleton provides a global perspective and sector expertise in Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech, Cybersecurity, Fintech, Healthtech, HR Tech, and Insurtech.

Follow Hampleton on LinkedIn and Twitter.

For more information, visit https://www.hampletonpartners.com.

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