Enterprise software and technology services public and private markets continue to reach new highs as a surge in new IPOs and large acquisitions in BI, healthtech, application services and cyberservices headline the quarter. Results International covers all aspects of technology with a focus on enterprise software/SaaS and technology services. In our Global Technology Market Review we focus on a number of specific subsectors at the end of every quarter to consider trends in valuation and activity in M&A and fundraising.
Highlights of the sector include:
- Positive trends across both B2B enterprise software and technology services:
- The number of buyers in technology services continues to grow alongside M&A activity.
- Results International’s SaaS valuation index traded at an all-time high with all enterprise software public indices up over the last 12 months.
- Enterprise software M&A had its second most active quarter since our records began.
- There were more B2B software IPO’s than the last 12 months combined: among them, Zoom (147%), PagerDuty (96%), Crowdstrike (101)% and Slack (44%) all saw share prices increase significantly after IPO, and healthtech saw its first IPO since Q3 2016.
- Two significant acquisitions in Business Intelligence: Salesforce acquired Tableau ($16.3bn), Alphabet acquired Looker ($2.6bn) – proving the value enterprises place on actionable, data-driven insights
- Two of the largest technology acquisitions in the quarter belonged to healthtech: Dassault Systemes agreed to acquire Medidata Solutions for $5.8bn and UnitedHealth Group acquired Equian for $3.2bn
- Technology services underwent sizeable European consolidation:
- Technology application services: Finland-based Tieto acquired Norway-based EVRY and France-based Capgemini acquired France-based Altran
- Cybersecurity services: Orange acquired Netherlands-based SecureLink (following its acquisition of UK-based SecureData last quarter) and Swisscom acquired its direct domestic competitor, United Security Providers
- Automation remains a key investment theme: UK-based Blue Prism acquired domestic rival Thoughtonomy adding scale and capability to rival rapidly growing UiPath, the recipient of a $568m Series D this quarter. In services, Hitachi acquired JR Automation’s Robotic SI business unit.
- Generating a holistic, accurate view of a customer’s identity featured as a key component in martech activity, as LinkedIn acquired Drawbridge, Dun & Bradstreet acquired Lattice Engines and CDPs Segment ($175m) and Tealium ($55m) raised big late Series rounds
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.