News Pick – Private Equity seduced by Software-as-a-Service Companies

Private Equity

May 9, 2017 – “Private equity suitors are giving strategics a run for their money in the hunt for SaaS targets. Software-as-a-service (SaaS) and the cloud computing infrastructure underpinning it are attracting healthy levels of private equity interest, showing how those technologies have gone mainstream. The PE firms are drawn to “anything with SaaS that shows sustainable, recurring revenue streams — that’s just a very attractive space for private equity,” says Bill Stoffel, US Private Equity Leader at EY. Buyout shops are lured by the steady cash flows of SaaS business models, as well as their versatility. A SaaS platform can be applied across sectors, from ecommerce to energy, explain other advisors. Interest from PE – in addition to strategic buyers — is expected to continue into 2018, they note.” Read more at Forbes