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EXECUTIVE SUMMARY

• The global software sector remains one of the most active sectors, with approximately $15 billion in financing volume and approximately $39 billion in M&A volume during Q2 ’19
  • 198 financings in Q2 ‘19 is 19% higher than the number of financings in the same period in ’18
  • 359 M&A transactions in Q2 ‘19 is 5% higher than the 343 deals consummated during the same period in ’18
  • Q2 ‘19 M&A volume was bolstered by Salesforce’s $15 billion acquisition of Tableau Software resulting in a 22% M&A volume growth over Q2 last year
• Business and Productivity Software had one of the highest financing volume and deal counts in Q2 ‘19 led by the $500 million financing of Kaseya and $300 million financing of Carta; the Financial Software sector also saw a high volume of financings
• Financial Software companies trade at the highest average revenue multiple at 11.5x EV/ ’19E Revenue compared to other software; the Technical Applications sector trades at the highest average EBITDA multiple at 31.7x EV/ ’19E EBITDA compared to other software
  • Security software had the highest average 2019E/2018A revenue growth at 30% compared to other software
  • Development and Operations Management software stock performance outperformed other software sectors with LTM growth over 33%
• Select Q2 ’19 Global Software Sector Active Investors:
  • Accel
  • Andreessen Horowitz
  • Bain Capital Ventures
  • Battery Ventures
  • Index Ventures
  • Insight Partners
  • Intel Capital
  • Kleiner Perkins
  • NEA
  • Norwest Venture Partners
  • Tiger Global Management
  • Vista Equity Partners
• Select Q2 ’19 Global Software Sector Active Strategic Buyers:
  • Constellation Software Inc.
  • Descartes
  • E2open
  • J2 Global
  • Mastercard
  • Medallia
  • Microsoft
  • Palo Alto Networks
  • Salesforce
  • SolarWinds
  • Twitter
  • Upland