Here is an overview of enterprise software M&A transactions we have recorded in Germany, Austria and Switzerland over the past six months:
With 98 enterprise software deals in the DACH region, activity has increased compared to a slower 2023. Foreign interest remains high: transactions with international buyers still account for more than 50% of recorded deals.
Valuations of DACH enterprise software firms remain high and attractive to sellers. Interestingly, the wide range of valuation outcomes was illustrated by two large software transactions during the reporting period:
- Swiss manufacturing simulation software company Beta CAE was sold to US company Cadence for around EUR 1 billion at a premium valuation of 14x EV/sales
- At the more mature end of the spectrum, Software AG was valued by Silver Lake at 2.3x EV/sales (corresponding to an enterprise value of EUR 2.4 billion)
US private equity was again a strong driver of M&A activity in the software space. We recorded several new anchor investments:
- TA Associates acquired the German market leader for content management software SER from Carlyle
- Battery Ventures invested in two fleet management software companies, Avrios and Vimcar, and merged them into a new group Shiftmove
- Marlin Equity Partners acquired the majority stake in the payment transaction and liquidity forecasting software Treasury Intelligence Solutions (TIS) GmbH
- Investcorp invested in the HR management software Veda GmbH
Looking at our deal pipeline, we expect 2024 to continue to be a solid year for software M&A.
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