GCA becomes part of Houlihan Lokey

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

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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
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