Shea & Company Annual Software Market Review - 2007
Shea & Company Annual Software Market Review - 2007
Shea & Company Annual Software Market Review - 2007
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2006 – <strong>2007</strong> <strong>Software</strong> M&A Transaction Data – Summary<br />
($ millions)<br />
Consideration Equity Enterprise EV / Revenue P/E Ratio<br />
% Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr<br />
Mean - all deals 95.9% 4.1% $1,021.7 $634.4 4.1x 3.4x 2.9x 45.2x 30.3x<br />
Median - all deals $420.0 $231.3 3.0x 2.8x 2.5x 31.0x 25.5x<br />
< $250<br />
Mean 91.9% 2.0% $151.1 $105.5 3.7x 2.2x 1.4x 45.4x 18.7x<br />
Median $188.1 $92.0 1.7x 1.6x 1.4x 27.1x 16.7x<br />
$250 - $500<br />
Mean 90% 10% $419.3 $358.9 3.0x 3.0x 2.5x 46.4x 36.6x<br />
Median $412.1 $358.9 2.7x 2.4x 2.1x 31.0x 27.8x<br />
$500 - $1000<br />
Mean 89% 11% $824.3 $689.3 3.8x 4.4x 3.6x 29.2x 25.8x<br />
Median $760.6 $634.0 3.5x 3.3x 3.1x 27.0x 23.8x<br />
> $1000<br />
Mean 100.0% 0.0% $2,307.1 $2,527.8 4.9x 4.0x 3.7x 41.9x 28.8x<br />
Median $1,717.7 $1,910.7 3.8x 3.3x 3.5x 31.3x 27.0x<br />
IT Security<br />
Mean 100.0% 0.0% $1,212.8 $722.6 3.6x 4.6x 3.3x 31.5x 28.5x<br />
Median $556.0 $350.0 3.1x 4.1x 3.2x 27.6x 25.7x<br />
Strategic - Mean 100.0% 0.0% $1,461.1 $769.8 4.3x 5.6x 3.7x 34.9x 28.5x<br />
Financial - Mean 100.0% 0.0% $468.0 $392.5 2.1x 2.0x 1.8x 21.0x nm<br />
ERP & Vertical Applications<br />
Mean 95.2% 4.8% $747.8 $566.0 4.4x 2.7x 2.5x 39.6x 24.1x<br />
Median $310.1 $231.3 2.4x 2.1x 1.9x 28.8x 22.3x<br />
Strategic - Mean 93.5% 6.5% $607.3 $417.3 5.5x 3.0x 2.7x 46.8x 27.8x<br />
Financial - Mean 100.0% 0.0% $1,008.8 $1,049.5 2.3x 2.1x 2.0x 33.4x 20.4x<br />
Information Management<br />
Mean 94.5% 5.5% $1,470.7 $959.4 3.2x 3.1x 3.0x 32.5x 23.3x<br />
Median $441.2 $364.6 3.3x 2.9x 3.2x 30.1x 24.4x<br />
Strategic - Mean 94.2% 5.8% $1,568.6 $1,002.3 3.3x 3.2x 3.0x 27.2x 23.3x<br />
Financial - Mean 100.0% 0.0% $197.2 $143.9 1.6x 1.5x nm 91.4x nm<br />
Infrastructure<br />
Mean 95.7% 4.3% $884.5 $469.9 5.0x 3.9x 3.3x 80.3x 46.5x<br />
Median $420.0 $175.0 3.5x 3.1x 2.5x 38.9x 39.3x<br />
Strategic - Mean 95.3% 4.7% $866.9 $428.2 5.9x 4.4x 3.9x 79.2x 42.3x<br />
Financial - Mean 100.0% 0.0% $385.2 $252.3 2.5x 2.3x 1.5x 100.9x 89.3x<br />
Note: Includes only transactions for which data was publicly available<br />
Source: <strong>Company</strong> releases, Wall Street research, <strong>Shea</strong> & <strong>Company</strong><br />
proprietary & confidential<br />
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