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:
Following on from a robust first quarter, public markets across most of our sectors have continued their upward trend with HealthTech (+17%) and MarTech (+16%) leading the way.
M&A deal volumes remained strong in Q2 with notable transactions within tech and tech enabled services including Vista Equity Partners’ acquisition of SaaS-based sales performance provider Xactly for $564m, Microsoft’s acquisition of Hexadite (AI Cybersecurity), Oracle’s acquisition of advertising analytics platform Moat and INC Research’s $4.6bn merger with InVentiv Health – the latter transaction advised by Results International.
Other transactions advised by Results International this quarter included F-Secure’s acquisition of Digital Assurance (Cybersecurity) and Accel KKR’s (through its portfolio company ESG) acquisition of Utiligroup (Enterprise Software / SaaS).
Notwithstanding the high M&A volumes, the tech IPO market, which remained largely subdued last year, re-opened this quarter with Cloudera, Yext, Okta all listing. Fundraising appetite also remained strong with a flurry of $100m+ raises including Tanium, Crowdstrike, Cybereason, Qualtrics and Zeta Global. All to suggest that there could be some interesting IPO activity ahead.
Whilst ongoing Brexit negotiations 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.
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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.