IT M&A deals and deal valuations are expected to be up according to 70 high-ranking IT executives. Each were queried at The Global IT M&A Forum,an event sponsored by martinwolf Global M&A Advisors that has operations in US, India & China.
Online PR News – 11-July-2013 – San Ramon, CA – News Release
San Ramon, CA — July 10, 2013 — Executives who are buyers and sellers of SaaS and Cloud Services companies were surveyed about the future of IT-related M&A deals at the Global IT M&A Forum attended by 70 executives in New York, June 12-13. Ninety percent (90%) responded that deals in the space will increase over the next 3+ years.
Further results revealed that 34% believe it is the beginning phase of 3+ years of deal growth in SaaS. Further, 70% of respondents said that transaction values will increase and most transactions will occur in North America.
According to Tim Mueller, CEO of the Global IT M&A Forum, “SaaS enterprise valuations have been sold at 4.5 to 6 times last twelve months earnings in 2012 according to the MW IT Index, much more than other types of IT companies. This indicates that valuations and deal flow is expected to continue, not by prognosticators, but by executives actually doing deals,” he said.
Mueller noted that 69% of respondents said that IT M&A is essential for cloud services and SaaS companies to be relevant and increase enterprise value.
“Sixty-seven percent (67%) of executives respondents said they are seeking relevant growth by adding new products and/or services, intellectual property, functional capabilities and/or domain expertise to enhance value,” Mueller concluded.
About The Global IT M&A Forum
Founded in 1998 by technology CEOs and M&A professionals, the Global IT M&A Forum brings together pre-qualified Buyers and Sellers of IT companies in face-to-face meetings over a two-day period. The Forum fills a void creating a live marketplace for mid-market IT companies and markets that have been historically underserved by large investment banks, large corporate buyers and other professional M&A advisors. IT industry segments served include IT Services and Business Process Outsourcing (BPO), Big Data, IT Security, IT Supply Chain, Software and Software as a Service (SaaS). Sponsored by martinwolf Global M&A Advisors, the Forum has been the initiation point for completed transactions valued in excess of $350 million.