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The Tech Report – Q1 2017 Market Review

By Sherif Hegazy 20 Apr 2017

Here at Results we cover all aspects of technology with a particular focus on enterprise software / SaaS, software-related IT services, and tech enabled services. However we like to turn our attention to a number of specific sectors at the end of every quarter to consider the trends and analyse the activity in the M&A, fundraising and public markets.

We have produced our view on the previous quarter’s proceedings in a series of individual market reviews on:

Digital Services

Enterprise Software

HealthTech

Cybersecurity

AdTech & MarTech

Following a turbulent 2016, public markets across all of our sectors have been resurgent over the last three months with MarTech (+41%), AdTech (+21%) Cybersecurity (+17%) and HealthTech (+14%) leading the way. This quarter also witnessed a record number of European transactions once again suggesting Brexit has had limited impact on strategic and investor acquisition appetite. Notable European transactions this quarter included Wolter Kluwer’s $319m acquisition of Tagetik (accounting software), Sage’s acquisition of Fairsail (HCM software) and Spotify’s acquisition of Sonalytic (audio detection technology). This trend has continued into Q2 with Accel-KKR’s acquisition of Utiligroup (SaaS-based utility software provider). Results International acted as financial advisor to both Accel-KKR and Sonalytic on their respective transactions.

The tech IPO market is also showing signs of recovery from the lacklustre performance in 2016 with Mulesoft, Alteryx, Okta and Yext all listing this year, the latter two early into Q2. Fundraising appetite (particularly in Europe) remained strong throughout Q1 paving the way for further M&A/IPO activity in the short-medium term.

Whilst Brexit and the subsequent triggering of Article 50 may have created an uncertain environment for both UK and EU companies, we are confident that the fundamental drivers of consolidation and investment within all of our sectors – growth, innovation, access to new geographies and the emergence of new buyers – will continue to drive strong levels of M&A and funding activity in 2017.

Click on the image below to view the report.

Tech Report

We hope you enjoy the document, and please do get in touch if you would like to discuss any of the themes with us. We look forward to speaking with you soon.

Sherif Hegazy

Manager

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