Informatica Acquisition Highlights SaaS Deal Trends
Deal News | May 17, 2025 | Blossom Street Ventures LLC
The article discusses the trends in acquisitions of publicly traded Software as a Service (SaaS) companies, highlighting data from acquisitions since December 2020, including Informatica, SolarWinds, and Enfusion. A significant focus is on the role of private equity, which has led 32 out of 46 transactions. The median acquisition price for these companies stood at $6.4 billion, with trailing twelve-month revenues averaging $786 million and a growth rate of 19%. The article notes that only 14 acquisitions were by strategic buyers, with firms like Thoma Bravo making a notable number of these purchases. The highest revenue multiple was Salesforce's acquisition of Slack at 33x revenue, whereas Salesforce's recent purchase of Informatica was at 4.9x due to its low growth. Despite not being wildly profitable - with a median EBITDA margin of 6% - these companies do not burn through cash, challenging common profitability metrics like the Rule of 40.
Sectors
- Software as a Service (SaaS)
- Private Equity
- Technology M&A
Geography
- United States – While specific geographies were not noted in the article, the presence of major US-based companies like Salesforce, Microsoft, and Adobe implies a significant focus on the US market.
Industry
- Software as a Service (SaaS) – The core industry involved in these acquisitions, with publicly traded SaaS companies being analyzed for revenue multiples and acquisition conditions.
- Private Equity – Private Equity firms are the primary buyers in many of these transactions, highlighting their significant role in acquiring large-scale SaaS companies.
- Technology M&A – The article focuses on mergers and acquisitions within the technology sector, particularly concerning software service companies.
Financials
- $6.4 billion – The median acquisition price for the analyzed public SaaS companies.
- 8.4x – The median revenue multiple for the transactions.
- 6% – Median EBITDA margin for acquired companies.
- 33x – The revenue multiple paid by Salesforce for its acquisition of Slack.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Blossom Street Ventures LLC | Source/Analysis Provider | Company | Private equity firm providing analysis on SaaS company acquisitions. |
| Informatica, SolarWinds, Enfusion | Acquired Companies | Company | Publicly traded SaaS companies that were recently acquired, used as case studies in the article. |
| Salesforce | Strategic Buyer | Company | Highlighted for its acquisitions of Slack and Informatica, known for paying high multiples. |
| Thoma Bravo | Private Equity Buyer | Company | Private equity firm noted for making multiple SaaS acquisitions. |