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Enterprise Software M&A Achieves Record Growth, Despite Shrink In Private Equity Investment

Enterprise Software

The latest Enterprise Software M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals how the sector maintained its high-growth trajectory in 2022 with a record-breaking 1,837 deals, up 8 per cent compared to 2021’s 1,702 deals. This was achieved despite the turbulent macro environment and a slow-down in deal activity in the second-half of 2022.

Share of private equity deals shrinks

In 2022 private equity acquisitions as a percentage of total acquisitions dropped to 36 per cent, a six-year low due to higher interest rates, a reversal of the previous three-year trend.  Between 2019 and 2021 financial sponsors’ share averaged 41 per cent. The median private equity deal size, however, remained significantly higher at $200m compared to $45m paid by strategic buyers.

The volume of deals exceeding $1 billion fell, with 10 transactions versus 19 in the first half.

Miro Parizek, founder and principal partner, Hampleton Partners, said: “Inflation, supply chain strain and continued geopolitical conflict have placed pressures on both tech giants and small vendors, but the enterprise software sector maintained its record-breaking run in 2022. 

“Many cash positive acquirers are deploying capital reserves to acquire smaller firms to bolster product offerings and consolidate their market share.

“Private equity firms are enacting roll-up strategies to challenge incumbent firms and build market-leading companies on a global scale. With vast reserves of dry powder, private equity has reduced the quantity of platform acquisitions, but has increased cheque sizes to mitigate portfolio risk.”

Top Enterprise Software acquirers – past 30 months

The second half of 2022 saw Norway-based Visma move up to top acquirer with 25 deals closed over the past 30 months, seven of which were inked in 2H2022.

Visma – 25 acquisitions including P8 Software, Flex Applications and Datapas

Volaris – 21 acquisitions including Evans CaseLoad, ArtBinder and Equiplano Sistemas

Valsoft – 20 acquisitions including Monaco, T-Innova and Ingeniera Aplicada and Apero Solutions

Thoma Bravo – 20 acquisitions including Coupa Software, SMA Technologies and Anaplan

Largest disclosed Enterprise Software deals of 2H2022

$20.0 bn – Adobe acquired Figma Inc.

$8.2 bn –  Vista Equity Partners acquired Avalara at 10.6x revenue

$7.4 bn –  CVS Health Corporation acquired Signify Health at 9.3x revenue

Hampleton’s Enterprise Software M&A Report analyses transactions, trends and activity across the Enterprise Applications; Business Intelligence & Customer Analytics; Information Management; Vertical Applications; Infrastructure Management and Design, Testing & Simulation segments.

Download the full Hampleton Partners’ Enterprise Software M&A Market Report 1H2023:

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