Costs in 2018 will also be the greatest across this time frame. Before 2018 two acquisitions have been consummated at EV/TTM earnings multiples over 10. Six of the seven acquisitions have gone in 20x + at 10x + and three. It’s astounding.
The shift to the cloud has occurred at a scale that was greater than most legacy software businesses estimated. And they are spending to grab. IBM acquired RedHat, a single firm. Microsoft purchased Github and LinkedIn. SAP bought 5 firms: Ariba Concur, Qualtrics, Successfactors.
Qualtrics brought 23x trailing twelve months revenue multiple. This is the largest. The only one greater is that the Microsoft/Github acquisition, which is based on media reports of rsquo & Github ;s revenue. Each of the additional data points is substantiated through people investor disclosures. It’s largest ever software purchase was backed by VC. Congratulations to the Qualtrics team!
We’re bound to find out more.
Last November, a year ago, I estimated that the latent buying power of the software ecosystem to be about $30B, excluding debt.
Let’s place the 2018 acquisition environment. It’s the very best M&A market to get $ 1B + earnings with six in the previous seven years. 2012 witnessed 3 acquisitions. In addition, $ 60B is exceeded by 2018 acquisition values for this type of acquisition.
Another blockbuster computer software acquisition, another week! Qualtrics is a Utah based provider of experience management program. Qualtrics writes and sells software to ask questions of employees and clients to help companies enhance worker satisfaction products customer experience, and manufacturer. Qualtrics had intended to go public. The business generated $342M in the last twelve months and’d increased 27 percent yearly.