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We’re Bullish On SaaS M&A – See Our December 2017 Market Update

Dec 14, 2017

We’re Bullish On SaaS M&A – See Our December 2017 Market Update

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Dear Clients and Friends,

The year is almost over. The report found here covers m&a trends, values and deals in the four sectors of Enterprise Data and Analytics that we follow, and sometimes lead. As you will see, it’s been a strong year. Please click here for our December 2017 Enterprise Data and Analytics report.

We’ve been advising buyers and sellers of Data and Analytics companies for more than 15 years now – more than 200 transactions – and each deal is still a treat. This week we announced another one: we were exclusive financial and strategic advisor to Tier1CRM, Inc., a fast-growing SaaS-based, CRM company, on a $34 million equity investment from Wavecrest Growth Partners, Salesforce Ventures, and Mass Mutual Ventures. We love it when we are able to help strong companies find new partners to help them reach the next level in their development. It never gets old. Read more here.

SaaS is hot these days; it’s where many firms aspire to be – and for good reason. At the same time, we note with some amusement that some in the media (and some investors) treat “SaaS” as if it is a defined industry. It’s not – any more than Big Data or the Internet are industries. SaaS (and Big Data and the Internet) is a powerful model that can help customers in many industries solve problems faster and at lower cost than some alternatives. But software vendors compete based on their ability to effectively solve specific customer problems – not based on technology. That’s what makes Tier1CRM successful – not the fact that they are “in the Cloud”.

As you will see from our report found here, m&a values, volume and trends in all four sectors of the Enterprise Data and Analytics industry remain strong. We believe they are likely to remain strong for some time – as demand by customers, investors, and buyers continues to outpace many other sectors.

We love working with strong Data and Analytics companies that solve real customer problems in clearly defined industries. We look forward to working with you in the future. In the meantime, we wish you and your families happy, healthy, peaceful and prosperous holidays and New Year.

Some of the more interesting deals this past month include:

•Verisk Analytics (NASDAQ:VRSK) agreed to acquire Power Advocate for $280mm,
•Uptake Technologies (Chicago, IL) raised $117mm in a Series D funding round led by Baillie Gifford, valuing the company at a post-money valuation of $2.3bn,
•Qubole (Santa Clara, CA) raised $25mm in an equity funding round led by Harmony Partners,
•Logz.io (Tel Aviv, Israel) raised $23mm in a Series C funding round led by OpenView Venture Partners,
•Sanderson Group (AIM:SND) acquired Anisa for $17.2mm, valuing the company at an implied 1.2x LTM revenue,
•TransUnion (NYSE:TRU) acquired FactorTrust, a provider of alternative credit data, analytics and risk scoring information.

Please see our December 2017 Enterprise Data and Analytics Update here.

Also, please don’t forget to remind Congress to keep the Internet neutral. Click here to help.

Ken Marlin

Ken Marlin

Ken Marlin is Managing Partner and Founder of Marlin & Associates and the author of "The Marine Corps Way to Win on Wall Street: 11 Key Principles from Battlefield to Boardroom" (St. Martin's Press 2016).

Over the course of more than 30 years Ken has advised scores of U.S. and international middle-market technology enabled firms on the best ways to buy, sell, grow and thrive. Along the way, he's been an entrepreneur (three times), a tech company CEO (twice), a senior corporate executive (twice) and an investment banker.

Seventeen years ago, Ken embarked on a journey to create a different sort of investment bank - one that would meld the investment banking skills he learned over 20 years on Wall Street with lessons he learned as a tech entrepreneur and the principles he learned during the decade he spent on active duty as a U.S. Marine Corps infantry officer. Today, Marlin & Associates is one of the most active M&A advisers in the information technology arena.

Institutional Investor Magazine has five times named Ken as one of II’s “Tech 50” and the II “FinTech 35” - both of which honor the most influential figures in the financial technology data and analytics sector.

Outside the office, Ken is a trustee of the Madison Square Boys and Girls Club, which serves underprivileged kids throughout the five counties of New York City; and an active supporter of the Phoenix House Foundation, The Wall Street Warriors Foundation, The Marine Corps Heritage Foundation, University of the People, the Hurricane Island Outward Bound School, and Outward Bound Peacekeeping.

Ken’s book has garnered strong reviews and is consistently ranked among the top in governance, finance and leadership. One reviewer called it a compelling vision to improve Wall Street by returning to solid core values like taking the long view, behaving with honor, delivering excellence and working for a cause greater than money.

Ken earned a BA from the University of California (Irvine), an MBA from UCLA, and a post-MBA Advanced Professional Certificate in Corporate Strategy from New York University. He lives in New York City with his wife, daughter, a dog, a cat and turtle.

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