We are pleased to share our 2019 Technology M&A Outlook. In this in-depth report, we review the record M&A market activity seen in 2018 and provide a data-backed forecast for the industry in the upcoming year for SaaS, e-commerce and content business owners. We have also shared detailes of our FY’18 performance and some acquisitions that we made during the year which will shape the way business owners and investors in the space complete M&A acquisitions in 2019 and beyond!
Head over to the FE blog to read the full report here. Feel free to share it and let us know what you think!
In related news, CNBC this week reported that private equity investments in cloud software are on the rise in 2019. According to the article, rising multiples for cloud software companies are being driven by heightened private equity investments. Leading PE firm Thoma Bravo’s agreement to acquire Ellie Mae earlier this week is one such example, landing the mortgage company software provider a $3.7 billion valuation. PE firms are utilizing this strategy to compete with the likes of Microsoft, Salesforce, IBM, and Oracle as they drive up competition in the M&A market.
In SaaS platform news, Alphabet and Salesforce have together backed a $75 million round of funding for UK platform startup GoCardless. The online payments company processes bank-to-bank payments for small businesses for recurring payments, rather than focus on credit card transactions like major competitors Stripe and Adyen. With clients like The Guardian and Financial Times, GoCardless will use the new injection from two of the largest players in tech to expand activity to the United States.
New in e-commerce business listings this week we have an award-winning $210K 10 Y/O Dropship Personalized Artisanal Gift Store business, with over a decade of operational history leading to a strong supplier relationships, creating a clear competitive advantage, high-quality customized product offering sourced from regional artisanal suppliers, proven market demand and customer loyalty, with up to c.33% of revenues generated from repeat clients in the L12M and robust c.9,000 keywords profile with backlinks from authoritative sites allowing it to rank high for organic search. If you are interested in this business, please follow the link to request a prospectus.
In events news, Founder Thomas Smale will be emceeing the Boston E-Commerce Meetup, where e-commerce entrepreneurs and professionals will gather to hear the expert panel share insights on E-Commerce Growth. Come join us for networking, pizza and wine from 6-8pm on Wednesday, March 16. RSVP here and keep an eye out for the venue!
Finally, LTV Conf early bird tickets will sell out this week, so don’t miss your chance to be around the most successful leaders in the SaaS space! When priced go up they are not coming back down so don’t wait to purchase. Discounts are offered to bigger groups, so make sure to bring your team, and use code FEINTERNATIONAL10 at checkout for an extra 10% off. Up to 400 invited SaaS Founders, Executives and Investors from private and public companies will be in attendance making this the perfect place to learn and make new connections.
Continue reading below for more on CNBC’s report on private equity activity and Salesforce and Alphabet’s backing of GoCardless.
Listings
New
E-Commerce – 10 Y/O Dropship Personalized Artisanal Gift Store – $32K gross/mo
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Affiliate – Lifestyle & Travel Blog – $3.9K gross/mo
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Sold
Display Advertising – Farming, Poultry Care & Supplies – $12K gross/mo
SaaS – B2B Customer Support Software – $6K MRR
In The News…
CNBC Reports Heightened PE Investments
CNBC this week reported that private equity firms are some of the main drivers of increased valuations on cloud software companies in 2019.
Thoma Bravo, a major private equity firm based in San Francisco, has agreed to a $3.7 billion acquisition of mortgage company software-provider Ellie Mae. In each of the three proposed multibillion-dollar software acquisitions proposed this year, the buyer has been a major private equity firm. The multiple for Ellie Mae is similar to what Vista paid on Mindbody and Apptio. Over 30 companies in the market are valued between $1 billion and $10 billion according to the Bessemer Cloud Index, which tracks publicly-traded subscription software companies.
So far in 2019, the largest announced cloud software deal has been Hellman & Friedman’s acquisition of Ultimate Software for $11 billion.
Salesforce and Alphabet back Payments Startup GoCardless
Alphabet and Salesforce have this week backed online payments startup GoCardless in a $75 million round of funding.
Alphabet’s venture arm GV partnered with private equity firm Adams Street Partners as co-leaders of the funding round. Co-founder and CEO Hiroki Takeuchi stated in an interview to CNBC, “We focus on what we think of as the recurring payments market — subscriptions, invoicing, installments — and each of those markets is super broken.” While GoCardless counts major players like Adyen and Square among its competitors, their focus is on bank-to-bank rather than credit card.
The company will use the new funds to expand operations to the United States.
For more updates throughout the week on the financial world of online business M&A, follow our team on Facebook, LinkedIn, Twitter, and Instagram.