Marlin & Associates commented recently that the demand by strategic firms and financial sponsors for mid-sized software firms has not slowed. Here is an excerpt from their recent newsletter:
This month, strategics continued to make acquisitions that enhanced their core services. Examples include Hyland Software’s acquisition of AnyDoc and Linedata’s acquisition of CapitalStream. Also, some strategics are willing to make investments in growth areas, as exemplified by Pearson’s investment in TutorVista and the London Stock Exchange’s stake in GATElab. The rapid pace of healthcare M&A activity by strategics also continues, as many HIT companies seek to expand their footprint. The acquisition of Humedica by Optum and dbMotion by Allscripts are indicative of this trend. While financial sponsors continue to actively pursue mid-size firms that demonstrate and have an ability to scale, after a busy Q4 2012, actual transactions by financial sponsors declined this month in the sectors that we cover.
Of interest are indeed the enterprise values for specific industry segments. Here is a snapshot sector comparison of current revenue multiples:
About M&A: Marlin & Associates is one of the most active investment banking and strategic advisory firms providing strategic and financial advice to worldwide buyers and sellers of middle-market technology firms. The firm is headquartered in New York, NY and has additional offices in San Francisco, CA; Washington, DC; Toronto, Canada; and Hong Kong, China serving companies that provide information and technology to a wide range of communities including those that serve the banking, capital markets, insurance, marketing and healthcare arenas.
Source: Marlin & Associates