Informatica: A Recent Highlight in SaaS Acquisitions
Deal News | May 17, 2025 | Blossom Street Ventures LLC
Public SaaS acquisitions provide critical data for determining private SaaS multiples, with audited all-cash transactions offering pure financial insights. Since December 2020, 46 public SaaS company acquisitions were recorded, nine of which were labeled as distressed due to poor growth, margin, and weak multiples. These distressed transactions are analyzed separately from higher-quality acquisitions. The median acquisition price was $6.4 billion, with companies moving beyond $5 billion in valuation seeing a smaller pool of potential acquirers, pushing them towards IPOs. The median sale price was 8.4x trailing twelve-month revenue of $786 million, with average growth at 19% year-over-year. Notably, these companies maintained a median EBITDA margin of 6%. Private equity firms, particularly Thoma Bravo, have been leading in these acquisitions, completing the majority compared to strategic buyers. Significant transactions include Salesforce’s acquisition of Slack at 33x revenue and Informatica at 4.9x revenue, reflecting varying growth and valuation trends.
Sectors
- Software as a Service (SaaS)
- Private Equity
Geography
- United States – The article covers acquisitions involving major U.S.-based companies like Salesforce, Microsoft, and other private equity firms.
Industry
- Software as a Service (SaaS) – The article focuses on acquisitions within the Software as a Service (SaaS) sector, detailing financial multiples and strategic acquisitions.
- Private Equity – Private equity firms are highlighted as leading acquirers in the SaaS industry, participating in the majority of transactions.
Financials
- $6.4 billion – The median acquisition price of the public SaaS companies.
- 8.4x – The median multiple of trailing twelve-month revenue for acquisitions.
- 19% – The year-over-year growth rate for the acquired companies.
- 6% – The median EBITDA margin among the acquisitions.
- 33x – The revenue multiple Salesforce paid for Slack.
- 4.9x – The revenue multiple Salesforce paid for Informatica.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Blossom Street Ventures LLC | Data Provider | Company | A private equity firm providing insights on SaaS acquisitions. |
| Informatica | Acquired Company | Company | A recently acquired public SaaS company. |
| SolarWinds | Acquired Company | Company | A recently acquired public SaaS company. |
| Enfusion | Acquired Company | Company | A recently acquired public SaaS company. |
| Salesforce | Buyer | Company | Acquired Slack at 33x revenue, a notable transaction among SaaS acquisitions. |
| Thoma Bravo | Private Equity Buyer | Company | A leading private equity firm involved in multiple SaaS acquisitions. |