Insights
Financial software had some of the largest financing deals in Q3 ‘21 led by the $1.1Bn financing of Chime, the $1.0B financing of FTX, and the $800MM financing of Revolut
Software Sector Report Q3 2021
EXECUTIVE SUMMARY
- In Q3 2021, M&A deal activity and private financing activity continued to grow while software performance in the public markets slowed down
- IGV tech-software index is up 28.3% over the last 12 months, in line with the S&P 500
- Business Intelligence & Analytics has outperformed the other software segments, achieving 70.6% LTM growth as of Q3 2021
- Q3 ’21 saw ~$72Bn in financing deal value and ~$128Bn in M&A deal value
- 690 financings, 220.9% higher than Q3 ‘20
- 555 M&A transactions, 18.3% higher than Q3 ’20
- Significant M&A activity in Q3 includes acquisitions in the Sales & Marketing sector: Intuit’s $12.0Bn acquisition of Mailchimp and Thoma Bravo’s $6.1Bn acquisition of Medallia
- Financial software had some of the largest financing deals in Q3 ‘21 led by the $1.1Bn financing of Chime, the $1.0B financing of FTX, and the $800MM financing of Revolut
- The software IPO market in Q3 has remained hot, continuing to reflect investors’ appetite for software assets
- Overall outlook in software growth remains healthy