July M & A Deals in the SMB Space

Here’s a roundup of the SMB-focused exits in North America last month.

Highlights:

• 20 deals announced
• 6 of the deals had a disclosed value
• 7 of the companies were from the SF/ Valley area, 4 from New York and 10 from other parts of the US
• 9 of the companies were VC-backed. The VC-backed companies with announced deal sizes sold for a median multiple of 8.8x invested cash.
• All buyers were from the US and all were strategic. No financial buyers.
• 13 buyers were public (one of those was an OTC company. The others were big board).
• Median time to exit: 6 years
• Shortest time to exit: 2 years
• Longest time to exit: 27 years!

Notable Deals:

LogMeIn buys Citrix’s Goto Business in a deal worth $1.8B. This includes the GoToAssist, GoToMeeting, GoToMyPC, GoToTraining, GoToWebinar, Grasshopper and OpenVoice products.

Salesforce buys next gen document collaboration platform Quip for $ 750m. Quip had a rockstar founding team that included Facebook’s former CTO and head of recruiting. Interestingly, Salesforce was already an investor in the business.

Stamps.com buys ShippingEasy for $55M. I think it’s safe to say that printing stamps is not a growth business. Recognizing that, Stamps is starting to use acquisitions to diversify. This is their fourth purchase since 2014.