The Software as a Service (SaaS) industry has been growing at an unprecedented rate in recent years. According to a report by Gartner, the global SaaS market is expected to reach $117 billion by 2021. This growth has led to a surge in mergers and acquisitions (M&A) within the industry. In 2008, during the height of the banking crisis, $18 billion worth of SaaS M&A occurred. Companies involved in these deals included Qualtrics, Cvent, and Momentive.
Qualtrics, a Utah-based software company that specializes in customer experience management, was acquired by SAP for $8 billion in November 2018. This was one of the largest SaaS acquisitions in history. Qualtrics had been preparing for an initial public offering (IPO) when SAP made its offer. The acquisition allowed SAP to expand its cloud offerings and strengthen its position in the customer experience market.
Cvent, a Virginia-based event management software company, was acquired by Vista Equity Partners for $1.65 billion in November 2016. The acquisition allowed Cvent to continue its growth and expand its offerings. Vista Equity Partners is a private equity firm that specializes in software and technology investments.
Momentive, formerly known as SurveyMonkey, was acquired by private equity firm Apax Partners for $1.1 billion in September 2015. The acquisition allowed Momentive to continue its growth and expand its offerings. Apax Partners is a global private equity firm that specializes in technology investments.
These acquisitions occurred during a time of economic uncertainty, with the banking crisis causing widespread panic and financial instability. However, the SaaS industry continued to thrive and attract investment. This is due in part to the recurring revenue model of SaaS companies, which provides a stable source of income even during economic downturns.
The SaaS industry has continued to grow and attract investment in the years since these acquisitions. In 2020, despite the COVID-19 pandemic causing widespread economic disruption, the SaaS market continued to grow. According to a report by Synergy Research Group, the global SaaS market grew by 30% in 2020.
In conclusion, the $18 billion worth of SaaS M&A that occurred during the banking crisis of 2008 demonstrates the resilience of the SaaS industry. Companies such as Qualtrics, Cvent, and Momentive were able to attract significant investment during a time of economic uncertainty. The recurring revenue model of SaaS companies provides a stable source of income even during economic downturns, making them an attractive investment opportunity for investors. The SaaS industry has continued to grow and attract investment in the years since these acquisitions, demonstrating its long-term potential for growth and profitability.
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