SaaS Valuations Up 20% through Q3 2012
IT Supply Chain Valuations Drop 23.3% Since April
The latest global MW IT Index®, released today by martinwolf M&A Advisors, shows that between April 1-November 30, 2012 valuations for companies in the IT Supply Chain industry in the United States decreased 23.3%. The report also reveals that while U.S. SaaS valuations have been flat for the last six months, they are up 20% for 2012.
The Index is the first-ever proprietary analysis of the enterprise values of IT companies in key sectors and geographies, including the United States, India and China.
Said martinwolf President and Founder Marty Wolf on the state of the IT Supply Chain industry, "While valuation growth has been steadily slowing for some time, declines over the last eight months are unprecedented. They are the result of a confluence of factors disrupting the PC industry supply chain that have made it tougher than ever for companies in this mature industry to find new paths to growth."
The factors are:
- New technologies such as cloud computing and tablets
- Increased competition from overseas competitors with new capital structures
- Microsoft, which announced in June that it would for the first time in the 37-year history of the company make a hardware product, the Surface tablet, which it plans to sell only through its own retail stores, at least in the United States
Of the growth in SaaS valuations, Wolf, quoted in a post in GigaOM said, "Salesforce.com is outpacing the SaaS market - up 20% in the last six months and up 50% year-to-date. In the same time period, [in contrast] Dell and HP have dropped 30 to 40%, and year-to-date are down nearly 50% from their highs, respectively."
To read the entire GigaOM post on SaaS valuations, click here .
To read a previous GigaOM post quoting Wolf on the promise of HP's new cloud computing initiative, click here.
The report also covers the IT Services industries in India and China. Among its conclusions are that the outlook for Indian IT companies is strong, even as they face new competition from China, and that China is moving up the IT value chain with a new focus on cloud computing, heavily supported by government investment.
To read the entire global MW IT Index® report, click here .
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With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with IT 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.
© martinwolf 2012
"If our outlook for IT Services and SaaS is essentially 'more of same,' we cannot say that about the IT Supply Chain industry."
- MW IT Index®