2020 started off in a quite different fashion than most people would have expected. No one has been able to foresee the tough challenges of the COVID-19 pandemic such as the halt of the economy. This has affected the world in many ways and traditional businesses are no exception. M&A acquisitions for SaaS-type online businesses have been relevant for quite some time already. However, the shift in the current landscape requires companies to adapt or to completely change their business model making these types of acquisitions more in demand. There hasn’t been a better time to look for a new digital business. Here are the 10 biggest SaaS acquisitions of 2020.
1. WAVY Global acquired by Sinch for $60.6 million
Sinch, a global leader in cloud communications for mobile customer engagement, has entered into a definitive agreement to acquire a majority stake in Wavy, a Brazilian business messaging tool, for a total cash consideration of BRL 355 million ($60.6 million). Wavy is part of Movile Group, an ecosystem of leading technology companies in Latin America, and has established itself as a leading business messaging provider in Latin America. Full article
2. Seal Software acquired by DocuSign for $188 million
eSignature solution company DocuSign closed the previously announced acquisition of Seal Software, contract analytics, and artificial intelligence (AI) technology provider. With the acquisition, DocuSign can integrate Seal’s technology and value proposition across its Agreement Cloud. Read more
3. SCI Solutions acquired by R1 RCM for $190 million
SCI Solutions, a Seattle company that operates as a SaaS online marketplace for patients and healthcare providers, recently got acquired for $190 million.
A Chicago-based company called R1 RCM that makes software to help healthcare companies track revenue is the buyer. R1 said in a press release that SCI’s customer base represents $225 billion in potential revenue, with its services covering more than 94,000 providers and 1,200 facilities. Read more
4. Xnor.ai acquired by Apple for $200 million
Apple announced its acquisition of Xnor.ai, a Seattle startup specializing in low-power, edge-based artificial intelligence tools. Xnor.ai began as a process for making machine learning algorithms highly efficient. According to Tech Crunch, Apple confirmed the reports with its standard statement for this sort of quiet acquisition: “Apple buys smaller technology companies from time to time and we generally do not discuss our purpose or plans.”
5. SAP Digital Interconnect acquired by Sinch for $250 million
The Swedish cloud communications company Sinch acquired SAP’s mobile SaaS unit SAP Digital Interconnect (SDI) for $250 million in cash in May.
Sinch offers different options for communications such as messaging, video, and voice through specialized APIs. SAP Digital Interconnect unit perfectly matches the products provided by Sinch, therefore, making it a logical business move. Sinch CEO, Oscar Werner said in a statement
“With SAP Digital Interconnect now becoming a part of Sinch, we build on our scale, focus, and capabilities to truly redefine how businesses engage with their customers, throughout the world. The transaction strengthens our direct connectivity globally. Plus, it enables us to expand and accelerate a range of business-critical services to mobile operators, including products for person-to-person messaging, reporting, and analytics.”More at techradar.com
6. Conga acquired by Apptus for $715 million
Apttus Corp., a company that makes software for managing work processes, agreed to acquire rival Conga, which has developed document-generation applications for customers including Salesforce.com Inc. The deal between Apttus, backed by private equity firm Thoma Bravo, and a contract lifecycle management specialist Conga is valued at $715 million. Read more
7. Moovit acquired by Intel for $1 billion
Silicon chipmaker Intel has signed a deal to acquire Israel-based public transit navigation app developer Moovit App Global Ltd. for an estimated $1 billion. “Intel’s purpose is to create world-changing technology that enriches the lives of every person on Earth, and our Mobileye team delivers on that purpose every day,” said Bob Swan, Intel CEO. “Mobileye’s ADAS technology is already improving the safety of millions of cars on the road, and Moovit accelerates their ability to truly revolutionize transportation – reducing congestion and saving lives – as a full-stack mobility provider.” Read more
8. Vlocity acquired by Salesforce for $1.3 billion
Salesforce announced its agreement to buy CRM software provider Vlocity for $1.33 billion. Vlocity builds software on top of Salesforce that is customized for verticals such as insurance, media and entertainment, and communications. Salesforce said the acquisition of Vlocity will help “open up new industry capabilities built on the Salesforce platform.” Salesforce reported annual revenues of $17.1 billion, up 29% year-over-year. Read more
9. Veeam Software acquired by Insight Partners for $5 billion
Private equity firm Insight Partners has announced the acquisition of Veeam Software to launch the cloud solutions company to a central position on a global scale. Veeam Software, based in Baar, Switzerland, has previously surpassed $1 billion in annual bookings. The company’s cloud portfolio, including backup solutions, cloud security offerings, and cloud data management is used by over 365,000 customers worldwide. Full article
10. Plaid Technologies acquired by Visa for $5.3 billion
Plaid Technologies is an API platform that helps developers share banking and other financial information more easily. In January 2020 it became a subsidiary of Visa, where it started to operate as an independent business unit. Plaid’s exit price is a triumph for its investors, who put a combined $310 million into the company. Most important among those rounds was a $250 million infusion that came in late 2018. Plaid was valued at $2.65 billion (50% of its final sale price) making the sale of the company largely successful. Read more
M&A business acquisitions have picked up a strong pace just within a few months of the new decade. The current landscape demands strategic changes that can be achieved through the disruption of modern technology. Businesses that are going to be able to reinvent themselves and improve the offering of their products and services, will be on top of the food chain. If you are interested in selling your SaaS business, our boutique SaaS brokerage firm Dotexit can help you measure its total worth, fill up the business valuation form.