Tomasz Tunguz (Theory Ventures) · 2023-01-16 · 1235d

The Most Acquisitive Acquihirers in Software: M&A Trends in 2020-2022

Analysis of 560 US software acquisitions under $400m from 2020-2022 reveals ServiceNow as the most acquisitive buyer with 5 deals, while the overall market maintained steady pace despite macroeconomic challenges. Acquirers paid an average of $1.4m per employee, roughly double historical norms, with CrowdStrike, Alphabet, and Motorola leading at $3m per employee. Small acquisitions continue to provide essential $10-20b annual liquidity to the startup ecosystem.

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Metrics in this report

2020 Acquisition Count

155count

annual

Small software M&A

2021 Acquisition Count

280count

annual

Small software M&A

2022 Acquisition Count

124count

annual

Small software M&A

25th Percentile Price Per Employee

0.7$m

p25

US software acquisitions under $400m (2020-2022)

75th Percentile Price Per Employee

2.2$m

p75

US software acquisitions under $400m (2020-2022)

Annual M&A Liquidity

10-20$b

range

Startup ecosystem (2020-2022)

Average Acquisition Value 2020-2022

77-83$m

mean

Small software M&A by year

Median Price Per Employee

1.4$m

median

US software acquisitions under $400m (2020-2022)

Top Acquirer Price Per Employee

3$m

mean

CrowdStrike, Alphabet, Motorola

Total Acquisitions Analyzed

560count

total

US software acquisitions under $400m (Jan 1, 2020 - Jan 16, 2023)