Another software acquisition, another week! This time SAP has agreed to buy Qualtrics for $8B. Qualtrics is a Utah. Qualtrics writes and sells applications to ask questions of employees and customers to help businesses enhance employee satisfaction goods customer experience, and manufacturer. Qualtrics had planned to go public this past week. The company made $342M in the previous twelve months and had increased 27.
Last November, a year ago, I estimated the latent buying power of this software ecosystem to be about $30B, excluding debt.
Costs in 2018 will also be the highest across this time period. Before 2018, just two acquisitions were consummated at EV/TTM revenue multiples greater than 10. At 20x +, six of the seven acquisitions have gone at three and 10x + in 2018.
Let’s put the 2018 acquisition surroundings into context. It’s the very best M&A marketplace to get $ 1B + sales with six in the previous seven decades. 2012 seen 3 acquisitions. Furthermore, 2018 acquisition worth for this kind of acquisition exceed $60B, more than double 2016, which included the Microsoft/LinkedIn merger.
23x trailing twelve months revenue multiple was fetched by qualtrics. This is actually the second largest. The only one greater is the Microsoft/Github acquisition, which can be based on press reports of rsquo & Github . Each of the data points is substantiated through investor disclosures. It’s largest ever software acquisition was backed by VC. Congratulations to the Qualtrics team!
The change to the cloud has occurred at a scale that was larger than most legacy applications businesses estimated. And they’re currently spending to catch up. Acquirers Microsoft IBM and SAP have spent the most: $25B+ each. IBM acquired RedHat, one company. Microsoft bought LinkedIn and Github. SAP bought 5 companies: Ariba Concur Successfactors.