Enterprise SaaS - the market is getting cloudy
INTRODUCTION TO OAKLINS TECH
Rapid advancements in technology, dramatic globalization and sector convergence are creating abundant M&A opportunities within the TMT industry. Oaklins’ TMT industry specialists across the world understand the underlying trends and rationales that are driving this consolidation and have developed an impressive track record of achieving extraordinary outcomes for its clients.
Today, the fast-growing SaaS market is one of the most sought after among financial investors. Combined with the strategic buyers’ appetite for acquiring smaller niched players in order to maintain their market positions while adapting to changing customer preferences, record M&A activity and valuation levels are seen on the market today. Although the enterprise SaaS market in some respects can be considered to be mature, it still accounts for only some 20% of total enterprise software spending, paving the way for continued strong growth going forward.
The software infrastructure transformation from traditional on-premise solutions to cloud has created opportunities for new innovative players in the enterprise SaaS industry. The M&A market has been very active in the last few years, as M&A has become a vital part of the strategy for larger SaaS companies, in order to stay competitive. The rapidly growing industry has also attracted a lot of interest from financial investors.Alpo Luostarinen, head of Oaklins Enterprise SaaS team
Managing Partner
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