SaaStr · 2021-02-24
· 1925d
Competitor Acquisitions by Big Tech Don't Kill Your Business—They Just Mean You Weren't Chosen
When large technology companies acquire competitors, entrepreneurs often panic unnecessarily. However, empirical evidence from SaaS shows that acquisitions rarely kill competing products and often grow the market instead. The real takeaway: if a big tech company acquires your competitor, you're likely off their acquisition list, but you can treat it as if they just raised $20-40M in venture capital.
Metrics in this report
ARR Threshold for Business Resilience
30-40$M
minimum
Enterprise SaaS applications becoming nearly impossible to kill
Klaviyo Post-Acquisition Valuation
4$B
minimum
Klaviyo's valuation shortly after Shopify launched competing email product
Oracle Eloqua Acquisition Price
1$B
exact
Acquisition price for marketing automation platform
Post-Acquisition Capital Allocation
20-40$M
typical
Additional capital acquirers allocate to acquired competitor products