So ware transac on volume increased 16 percent over the past three months, from 456 to 528. Deal value gained 75 percent, from $29.4 billion to $51.4 billion. Volume throughout the past fi ve quarters reached its peak in Q2 2016, whereas value reached its zenith in Q3 2016.

Strategic acquirers completed seven of the top ten highest value so ware deals in Q1 2017. The industry’s largest transac on year-to-date was Intel’s announced acquisi on of Mobileye, which develops self-driving technologies, for $14.7 billion. The Mobileye acquisi on follows several related transac ons in 2016 by high profi le acquirers such as Uber’s acquisi on of O o for $680 million and General Motors’ acquisi on of Cruise Automa on for $581 million.

The Business So ware segment, which consists of so ware designed for general business prac ces and not specifi c industry markets, saw a 29 percent increase in volume on a quarterly basis. The Business segment’s highest value deal in Q1 2017 was Blackstone Group’s announced acquisi on of Aon’s technology-enabled and human resources pla orm for $4.3 billion.

The Infrastructure So ware segment experienced a 27 percent volume increase in Q1 2017. Four of the overall industry’s top ten highest value deals year-to-date occurred in the Infrastructure segment. The largest of these was Cisco System’s acquisi on of AppDynamics, an applica on performance management and IT analy cs company, for $3.6 billion.

As for other industry sectors, volume in the Niche So ware segment, which is targeted to specifi c ver cal markets, improved 14 percent in Q1 2017. Four of the industry’s top ten largest acquisi ons thus far in 2017 occurred in the Niche segment. Meanwhile, deal ac vity in the Consumer So ware segment declined 11 percent.

Figure 3. Presents transaction volume by target segment within the Software Industry from January 1, 2016 through March 31, 2017.

Q1 2017 :: Mergers and Acquisitions Trend Report

Presented by Berkery Noyes

SOFTWARE INDUSTRY

Figure 1. 2016-2017 value and volume comparison by quarter.

Top Ten Notable Transactions Q1 2017

Figure 2. Lists the top ten transactions for Q1 2017 and calculates their value as a percentage of the aggregate transaction value as shown in Figure 1.

Note: Transaction data based on announced date. Deal value represents total consideration paid by the acquirer.

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All charts in this report are based on data gathered by Berkery Noyes’ research department. All time period statistics are based

on the transaction announcement date. Th e information contained herein is of a general nature and is not intended to address the circumstances of any particular company, individual, or entity. Th ere can be no guarantee that such information is accurate.

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