The third quarter of 2017 showed a marked improvement in deal activity over the second quarter, with the SaaS and tech-enabled services sectors showing the most significant gains. This was largely due to a resurgence in acquisition interest from strategic players, many of whom took a hiatus from M&A earlier in the year. Strategic buyers including Symantec, SAP, Sage and Capgemini all announced notable acquisitions in Q3’17, signaling to the markets that growth via acquisitions continues to be core to their growth theses.
In addition to large-scale strategic acquirer interest, financial sponsors in key technology markets also stepped up to the plate. M&A activity from private equity groups and venture capital investors has ramped up substantially in 2017, with notable acquirers like Vista Equity Partners, SoftBank and New Enterprise Associates announcing hallmark investments in Q3. Alongside increased deal activity also comes new fund closings being announced on an almost daily basis. Intrepid expects these trends to continue for the foreseeable future.