The global software sector remains one of the most active sectors, with ~$63Bn in financing deal value and ~$110Bn in M&A deal value during 2019
848 financings, 16% higher than 2018
1,453 M&A transactions, 5% higher than 2018
Significant M&A activity in Q4 includes major acquisitions in the cybersecurity sector: Thoma Bravo’s $3.8Bn acquisition of Sophos and F5 Network’s $1.0Bn acquisition of Shape Security
Financial Software had some of the largest financing deals in Q4 ‘19 led by the $1.7Bn financing of Paytm and $500MM financing of Chime; the Business Intelligence & Analytics sector saw high financing volume
Software sector trading performance remained healthy, as the IGV tech-software index outperformed the S&P 500 by 7.2% in 2019
Sales & Marketing software index grew 49.7% LTM, outperforming all other software sub segments
Technical Application software companies traded at 9.7x and 28.7x for 2019 Revenue and EBITDA, respectively, among the highest in software
Momentum and growth rates remain healthy with the Business Intelligence & Analytics subsector leading 2019E/2018A revenue growth at 31.0%
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