SaaS Deals

Extracted Attributes

• Definition

  A cloud computing service model where a provider delivers application software to clients while managing the required physical and software resources.

• Access Method

  Usually via a web application.

• Market Driver

  AI is underpinning a new wave of enterprise SaaS deals.

• Core Principle

  Separates the possession and ownership of software from its use.

• Valuation Trend

  Multiples for SaaS companies have remained relatively stable, potentially higher than historical averages.

• Customer Benefit

  Abstraction of limitless computing resources at reduced cost due to economy of scale.

• Architecture Type

  Typically multi-tenant, sharing resources for efficiency; siloed environments available for additional fee.

• Infrastructure Model

  Typically runs on rented Infrastructure as a Service (IaaS) or Platform as a Service (PaaS) systems.

• License Availability

  Perpetual licenses are rarely available.

• Common Revenue Models

  Freemium, subscription, usage-based fees.

• Market Share (Q1 2023)

  66% of all software M&A transactions focused on SaaS companies.

• Market Activity (Q1 2023)

  SaaS M&A deals increased by 21% quarter-over-quarter.

• Thoma Bravo Strategy Shift

  Pioneered acquisition of undervalued recurring revenue businesses before shifting to market-leading SaaS deals.

• Thoma Bravo Operating Playbook

  Involves decisive cost-cutting at closing, followed by rigorous focus on growth and successful fundraising.

• Private Equity Involvement (Q1 2023)

  61.1% of all SaaS M&A transactions were PE-driven.

Timeline

• SaaS use began as a cloud computing service model. (Source: Wikipedia)

  2000

• Thoma Bravo shifted its focus to market-leading SaaS deals. (Source: Related Document)

  2010

• Notable B2B SaaS acquisitions included DocSend by Dropbox ($165 million) and Chorus.ai by ZoomInfo ($575 million). (Source: Web Search)

  2021

• Top SaaS acquisitions included OpenText and Micro Focus, IBM and Apptio, Silver Lake, CPPIC, and Qualtrics, Kaseya and Datto, and Oracle and Cerner. (Source: Web Search)

  2022-2023

• SaaS companies accounted for 66% of all software M&A transactions, with private equity-driven deals representing 61.1% and overall SaaS M&A deals increasing by 21% quarter-over-quarter. (Source: Web Search)

  2023-Q1

• Cisco announced its $28 billion acquisition of Splunk. (Source: Web Search)

  2023-09

• SaaS became the main form of software application deployment. (Source: Wikipedia)

  2023

• 211 enterprise SaaS mergers and acquisitions were completed. (Source: Web Search)

  2024-Q4

• 210 enterprise SaaS mergers and acquisitions were completed, with a total deal value of $29.1 billion, a 24.8% decrease quarter-over-quarter. (Source: Web Search)

  2025-Q1

Software as a service

Software as a service (SaaS ) is a cloud computing service model in which a provider delivers application software to clients while managing the required physical and software resources. SaaS is usually accessed via a web application. Unlike other software delivery models, it separates "the possession and ownership of software from its use". SaaS use began around 2000, and by 2023 was the main form of software application deployment. Unlike most self-hosted software products, only one version of the software exists and only one operating system and configuration is supported. SaaS products typically run on rented infrastructure as a service (IaaS) or platform as a service (PaaS) systems including hardware and sometimes operating systems and middleware, to accommodate rapid increases in usage while providing instant and continuous availability to customers. SaaS customers have the abstraction of limitless computing resources, while economy of scale drives down the cost. SaaS architectures are typically multi-tenant; usually they share resources between clients for efficiency, but sometimes they offer a siloed environment for an additional fee. Common SaaS revenue models include freemium, subscription, and usage-based fees. Unlike traditional software, it is rarely possible to buy a perpetual license for a certain version of the software. There are no specific software development practices that distinguish SaaS from other application development, although there is often a focus on frequent testing and releases.

Web Search Results

• 10 Notable SaaS Acquisitions and Market Trends

  Top 5 SaaS acquisitions in 2022-2023 include OpenText and Micro Focus, IBM and Apptio, Silver Lake, CPPIC, and Qualtrics, Kaseya and Datto, and Oracle and Cerner. Other notable SaaS deals include Google and Fitbit, PayPal and Honey, Facebook and CTRL-labs, GitHub and Semmle, and McDonald’s and Apprente and Dynamic Yield. [...] Increase deal efficiency with Ideals powerful features Get started ## 5 noteworthy SaaS deals that shaped today’s landscape Discover the five SaaS transactions that have had an impact on the current technological landscape. ### 1. Google and Fitbit Valuation: $2.1 billion Strategic goals: Google aims to strengthen its position in the wearables market and address challenges with its Wear OS [...] SaaS M&A activity continues to thrive, with 66% of all software M&A transactions in 1Q23 focused on SaaS companies. Private equity plays a significant role, with PE-driven deals representing 61.1% of all SaaS M&A transactions. Despite economic uncertainties and market fluctuations, SaaS M&A deals increased by 21% QOQ, showcasing the enduring strength and attractiveness of the SaaS sector in 2023.

• In Q1 2025, enterprise SaaS M&A deal count hit 210, according to ...

  Consider, first, the good news, of which there’s quite a bit: Q1 2025 saw 210 enterprise SaaS mergers and acquisitions get done, a number on par with the 211 deals inked in Q4 2024, according to recent PitchBook data. That’s also a sizable jump from the beginning of Q1 2024, which saw 165 enterprise SaaS mergers and acquisitions. [...] Now, consider the less-good news: The total deal value for enterprise SaaS M&A in Q1 2025 is down quarter-over-quarter by about 24.8%—from $38.7 billion in Q4, to $29.1 billion this past quarter. What’s more, five deals account for about half of the total transaction value across the quarter: Clearlake Capital Group’s $5.3 billion buyout of medical software company ModMed, KKR-backed Cotiviti’s $3.1 billion buyout of healthcare data entity Edifecs, ServiceNow’s $2.9 billion acquisition of [...] So, what does all this mean? I think it comes down to two things. The first: AI is underpinning a new wave of enterprise SaaS deals and, despite lingering regulatory and macro pressures, dealmakers are getting comfortable rolling the dice again on market-moving transactions. And second: At the same time, the future remains uncertain, both in terms of how regulatory scrutiny will look in the U.S. and abroad over the company years, and the level of macroeconomic volatility that may (or may not)

• The Ultimate Guide to SaaS Software Sector M&A - Forbes Partners

  Despite economic pressures, multiples for SaaS companies have remained relatively stable. The perception of lower multiples may stem from the fact that many deals in 2021 involved software companies with significantly higher GREM scores compared to those in 2022 and 2023. In reality, current multiples may be higher than historical averages. This stability is partly driven by an imbalanced supply-demand curve, with an unprecedented backlog of capital—often referred to as ‘dry powder’—that [...] Favorable Market Conditions. With SaaS valuations remaining robust, especially for companies with strong ARR growth and retention metrics, many founders see an opportunity to capitalize on the favorable market environment. If your SaaS company is experiencing high demand or has secured a competitive edge in the market (e.g., operationally embedded or vertical-specific solutions), now might be an ideal time to maximize your company’s valuation by pursuing a sale. [...] In September 2023, Cisco announced its $28 billion acquisition of Splunk, a leader in cybersecurity and observability software. This deal is aligned with Cisco’s strategic focus on expanding its cybersecurity capabilities and deepening its presence in cloud observability. Cisco aims to leverage Splunk’s expertise to enhance its offerings in security and operational resilience across diverse enterprise environments. The all-cash transaction reflects Cisco’s commitment to securing high-value

• 76 Top SaaS Companies to Know In 2024 - Datamation

  SurveyMonkey was acquired by Symphony Technology Group (STG) in a deal valued at around $1.5 billion. Presently, SurveyMoney’s market capitalization is estimated at $3.13 billion. Founded: 1999 Type of SaaS Company: B2B and B2C SaaS company Company Size: 1,000 to 5,000 Key Products: SurveyMonkey Forms SurveyMonkey Genius Visit SurveyMonkey ### Veeva Systems

• Notable B2B SaaS Acquisitions in 2021 - PANBlast

  For some companies, an acquisition is a way to grow an existing business and maybe even add a SaaS offering. After all, there’s a reason making an acquisition shows momentum in the market. (Publicizing the deal also provides a chance to showcase newly-expanded capabilities and gets you in front of new potential investors, segments and customers. You can find more on that in our “Guide to Announcing the Acquisition of Another Company” ebook.) [...] 2. DocSend to Dropbox – In March, Dropbox acquired DocSend for $165 million. According to reporting by TechCrunch, acquiring DocSend — which allows customers to share and track documents using a secure link — gives Dropbox’s platform an end-to-end, secure document-sharing workflow. [...] 4. Chorus.ai to ZoomInfo – In the most recent acquisition on our list, ZoomInfo acquired Conversation Intelligence leader Chorus.ai in July for $575M. TechCrunch covered the announcement in a piece titled, “ZoomInfo drops $575M on Chorus.ai as AI shakes up the sales market.” The article goes beyond only reporting the news, including a quote from ZoomInfo’s CEO and speculating on future financial exits in the Conversation Intelligence space.