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Significant M&A activity in Q2 includes acquisitions in the Financial Applications sector: Bill.com’s $2.5Bn acquisition of Divvy and Visa’s $2.1Bn acquisition of Tink

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Software Sector Report Q2 2021

EXECUTIVE SUMMARY

  • In Q2 2021, M&A deal activity and private financing activity continued to grow whilst software performance in the public markets grew steadily
    • IGV tech-software index is up 34.9% over the last 12 months, underperforming the S&P 500 by 3.0%
    • Business Intelligence & Analytics has outperformed the other software segments, achieving 79.5% LTM growth as of Q2 2021
  • Q2 ’21 saw ~$55Bn in financing deal value and ~$96Bn in M&A deal value
    • 577 financings, 146.6% higher than Q2 ‘20
    • 488 M&A transactions, 54.9% higher than Q2 ’20
  • Significant M&A activity in Q2 includes acquisitions in the Financial Applications sector: Bill.com’s $2.5Bn acquisition of Divvy and Visa’s $2.1Bn acquisition of Tink
  • Sales & Marketing software had some of the largest financing deals in Q2 ‘21 led by the $1.0Bn financing of MessageBird, the $775MM financing of Perch, and the $550MM financing of Kajabi
  • Overall outlook in software growth remains healthy, particularly in the private markets
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