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 May 18, 2013
Second Annual Report on Top 10 SaaS Companies
Valuation Gap Widens for 
SaaS Industry Leaders
 

 

The martinwolf 
report on the leading SaaS companies of 2012, released today, reveals two key findings: 

Of the 20 SaaS leaders we tracked in our MW IT Index�, U.S. Edition, in 2012, 30 percent - or six companies - were acquired last year.
SaaS  
The six companies acquired in 2012 were purchased by large traditional software companies jockeying for leadership in the SaaS space. Software leaders acquired two other SaaS companies in 2012 that were not tracked in our Index because they did not meet all of our criteria. Of the eight SaaS leaders acquired by traditional software companies in 2012, five garnered premium valuations of between 5.7 and 12 times 12 months trailing revenue. 

  

 As we predicted in our report last year on leading SaaS companies in 2011, the valuation gap between the top 10 SaaS leaders and the second 10 SaaS leaders continued to widen in 2012.

 
A year ago the difference between the median enterprise value of the Top 10 "SaaSiest" companies and the Second 10 "SaaSy" companies was 7.4 times 12 months trailing revenue versus 3.2 times. In other words, the Top 10 were worth more than twice the Second 10.

 

As of March 2013, the valuations of the Top 10 SaaS companies increased to 8.7 times 12 months trailing revenue while valuations of the Second 10 decreased to 2.7 times - a difference of more than three times.  

 

To find out which SaaS companies made our Top 10 list this year, and for a complete analysis of the Top 10 SaaSiest versus the Second 10 SaaSy, click here

 

To learn more about martinwolf contact Matthew Putzulu at mputzulu@martinwolf.com.  

About martinwolf    

 

     San Ramon Office          
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 115 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.


November 6, 2012

Rolta, through its subsidiary Rolta International, Inc. announced that it acquired 

AdvizeX Technologies, LLC, a US company providing a comprehensive set of IT products and services ranging from roadmap planning to cloud-computing implementation strategy. With the acquisition, Rolta is now one of the top national partners of Oracle, Microsoft, HP, EMC and VMware in the US. Rolta was represented by martinwolf in the transaction. 

Please click here to view the announcement.

 

June 15, 2012

glendonTodd Capital LLC announced that it acquired Aztec Systems, a leading provider of enterprise technology solutions to hundreds of U.S. middle-market companies. Aztec was represented by martinwolf in this transaction. Aztec, a member of Microsoft's Presidents Club, was recently ranked 27th in revenue on Bob Scott's 2012 Top 100 VARS list and serves more than 700 middle-market clients. Terms of the transaction were not disclosed. Please click here to view the announcement.

 

December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   

 

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