Industry Reports

Published on: 11/13/2020
Merger and acquisition (M&A) activity reached a record of 2,564 deals totaling over $150 billion in value over the last twelve months. M&A activity soared in Q3 to 945 deals, exceeding the prior quarterly record by nearly 300 deals while doubling Q2 volume. However, deals for the quarter tended to be smaller transactions at weaker multiples.
Published on: 10/16/2020
Deal volume and financings across the FinTech & Payments industry decreased 20% year-over-year (YOY) but increased 11% on a quarter-over-quarter basis.  The contraction in deals and financings reflects the adverse impacts of the COVID-19 pandemic that started in March and has continued through the end of Q3 2020.  In total, there were 152 mergers and acquisitions (M&A) announced in the space with Payments remaining the largest segment. 
Published on: 10/15/2020
The pandemic has catalyzed demand for AppDev and deployment software and services in order to meet the surge of online consumers, students, and employees in the remote environment. In the workplace, the pandemic has heightened the need for enterprise-wide digital transformations for improved connectivity and transparency. 
Published on: 08/27/2020
Capstone expects COVID-19 will accelerate adoption of nonprofit software by several years. The reallocation of focus towards digital fundraising and increased utilization of subscription giving are anticipated to generate higher transaction dollars for digital fundraising solutions.
Published on: 08/27/2020
COVID-19 has had a larger impact on HCM SaaS companies than the broader SaaS universe as hiring freezes, layoffs, and workforces moving remote caused significant segment disruption. However, as the country gets back to work, Capstone expects the HCM SaaS industry to rebound with some potentially new longer-term trends emerging as capabilities like remote employee management and increased use of outsourced contractors provide more staffing flexibility.
Published on: 08/18/2020
Merger and acquisition (M&A) activity fell in Q2 2020 to 473 deals for the quarter, better than Capstone expected, as transaction activity remained surprisingly high though deals tended to be smaller transactions at weaker multiples. Over the last twelve months, M&A activity reached a record 2,176 deals totaling over $150 billion despite a recent slowdown in deal activity and decline in public deal dollar volume.
Published on: 08/11/2020
Healthcare IT is undergoing an accelerated growth phase as the pandemic pushes the Healthcare industry to innovate and meet patient demand despite limitations on in-person visits.  The need for immediate remote solutions,
Published on: 07/15/2020
In this report, we highlight business sectors such as the Hospitality Merchant industry, which has seen steady sales growth surpass the pre-COVID levels reported during the week of March 2nd, presenting ample tailwinds for the FinTech industry. Additionally, global retail e-commerce sales increased 81% year-over-year in May, and global ePayment technology solutions have seen a dramatic increase in growth driven by the pandemic. In total, there were 137 mergers and acquisitions (M&A) announced in the space with Payments remaining the largest segment. Moving forward, we see significant opportunities for the Payments industry to continue evolving as it adds new revenue streams focused on the customer’s experience, risk management tools, cross-border capabilities, B2B efficiencies and industry-specific offerings, and e-commerce and mobile capabilities.
Published on: 06/19/2020
Last twelve month (LTM) merger and acquisition (M&A) activity in the HCM SaaS industry continued its upward trend with 150 deals. Deal volume in Q1 2020 reached a quarterly record of 48 deals as COVID-19 didn’t slow deal activity. M&A targets were valued at a healthy median revenue multiple of 5.4x LTM, slightly below the 5.7x and 5.8x peaks we saw in 2016 and 2019, respectively.
Published on: 06/15/2020
While some software providers have been negatively impacted by the lack of in person events due to COVID-19, the pandemic has largely created positive long-term tailwinds for the industry as nonprofits seek to diversify their fundraising with a heavier focus on digital giving. Recent market trends include the influx of private equity, growing popularity of donor-advised funds (DAFs), and accelerating transition to digital giving.

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