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The Tech Report – Q3 2018 Market Review

By Daniel Lee 11 Oct 2018

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 Horizon

Enterprise Stack

HealthTech

CyberScope

MarTech Barometer

Highlights in the quarter include:

  • Enterprise software M&A activity is at its highest level (443 Q3 deals) since our records began in 2013, along with the highest total disclosed deal value (c.$53bn) – driven primarily by Broadcom’s blockbuster acquisition of CA Inc. ($18.4bn).
  • Valuations remain at record highs on the public market (all RI Global Software Indices have grown 10%+ over the quarter) and within the M&A market (Marketo, OpsGenie, Datorama all acquired at 10x+ revenue).
  • Growth in cloud IaaS has driven demand for complimentary services as enterprises move off premise at increasing rates; Results International acted as exclusive financial advisor to hybrid cloud and IT services consultancy OSCL on their sale into Cancom in August, highlighting this trend.
  • The Results International IT/Consulting Services Index is also at its highest level since our records began, gaining 20% over the last 12 months. IT services companies and management consultancies continue to encroach on traditional marketing services territory.
  • PEs, VCs and entrepreneurs capitalising on highly attractive exit-market dynamics, major software vendors’ continued search for innovation and record levels of dry powder within PE and VC funds has resulted in a buoyant and exciting tech market.

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.

Daniel Lee

Vice President

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