Another blockbuster software acquisition, another week! Qualtrics is a Utah based supplier of expertise management software. Qualtrics sells and writes software to ask questions of customers and employees to help companies improve employee satisfaction goods customer experience, and brand. Qualtrics had intended to go public. The company made $342M in the last twelve months and’d increased 27.
Last November, a year ago, I estimated the latent purchasing power of this software ecosystem to be approximately $30B, excluding debt.
The shift into the cloud has occurred at a scale that was greater than most legacy applications companies estimated. And they are currently spending to grab. One firm, RedHat was acquired by IBM. Microsoft purchased LinkedIn and Github. SAP bought 5 companies: Ariba, Callidus, Concur, Qualtrics, Successfactors.
Qualtrics fetched 23x trailing twelve months revenue multiple. This is the second biggest among those I’ve monitored. The only one greater is that the Microsoft/Github acquisition, that is based on media reports of Github’s earnings. Each of the data points is substantiated through public investor disclosures. It’s ever VC backed program acquisition. Congratulations to the Qualtrics team!
Prices in 2018 are also the greatest across this time period. At EV/TTM revenue multiples over 10 , only two acquisitions have been consummated before 2018. Six of seven acquisitions have gone off at 10x+ and three. It’s astonishing.
Let’s put the 2018 acquisition surroundings into circumstance. It’s the best M&A marketplace to get $ 1B + sales with six in the previous seven years. 2012 witnessed 3 acquisitions. Additionally, $ 60B is exceeded by 2018 acquisition values for this kind of acquisition.