News

Blackpeak Capital SaaS/ software market update – March 2025

Blackpeak Capital SaaS/ software market update – March 2025

Blackpeak are pleased to present our latest SaaS/ Software sector update report with market data through to 28 February 2025.

Despite the market volatility in recent weeks, the report highlights an improving trend in SaaS and Software sector transaction activity across both M&A and capital raisings. We believe 2025 is poised for a further improvement in SaaS and Software M&A and capital raising activity underpinned by:

  • Improving SaaS and Software valuation multiples in 2024, despite a recent correction driven by global uncertainty, will provide a better backdrop for agreeing terms between buyers and sellers, facilitating M&A and capital raising activity
  • Inflation and interest rates peaking in 2024 and expected to decline further in 2025, supporting better acquisition financing terms and valuations for SaaS growth companies
  • Strong performance of the SaaS and Software sectors in the last 12 months with performance significantly exceeding the wider market, despite slowing average revenue growth rates since 2022
  • Investors continue to place a premium on revenue growth and profitability, with a strong correlation between trading multiples and the Rule of 40
  • Both strategic acquirers and private equity firms are expected to be very active, with strong interest in vertical SaaS companies with strong unit economics and growth
  • Private equity and venture capital funds are facing growing pressure to deploy dry power and distribute capital, driving activity on both the buy and sell sides

SaaS Sector Update – March 2025_vSent

For more information contact:

Scott Colvin

+61 416 335 455

scott@blackpeakcapital.com.au

Blackpeak Capital technology market update – March 2025

Blackpeak are pleased to present our latest ANZ technology market update report (see link below) with market data through to 28 February 2025.

Despite the market volatility in recent weeks, the report highlights an improving trend in technology sector transaction activity across both M&A and capital raisings. We believe 2025 is poised for a further improvement in technology M&A activity underpinned by:

  • Improving activity levels in 2H 2024 and early 2025 across both private equity and strategic buyers
  • Inflation and interest rates peaking in 2024 and expected to decline further in 2025 supporting better acquisition financing terms and valuations for long duration growth assets
  • Improving valuation multiples in 2024 providing a better backdrop for agreeing terms between buyers and sellers (ie. bid-ask spread on valuation is narrowing)
  • Private equity sitting on record levels of dry powder and need to deploy after several quiet years on below average activity

Blackpeak Technology Sector Update (March 2025) vF

For more information contact:

Scott Colvin

+61 416 335 455

scott@blackpeakcapital.com.au

Blackpeak Technology Market Update: IT Services

Blackpeak are pleased to present a market update on the IT Services sector in ANZ which includes key trends on M&A & financings as well as valuation benchmarking data.

M&A activity in ANZ has been predominately related to bolt-on acquisitions with the ‘buy & build’ strategy continuing to be a common theme amongst the IT Services sector in ANZ (both public & private) as companies look to increase scale and add specialist capabilities through M&A.

Recent platform investments include BGH’s acquisition of NZ-based Managed Services provider Fusion5 (Dec-23) whilst Cyber & Managed Security provider AU Cloud (ASX:SOV) recently raised $30m to fund 3 acquisitions (Mar-24). 

The outlook for IT Services remains strong with spending to continue to be underpinned by digital transformation and outsourced managed services along with an increased focus on Cyber Security & AI as companies look to stay on top of security and respond to customer demand around how to incorporate AI into their service offering.

The report can be accessed in the link below:

IT Services Sector Update_Oct24