Supply Chain, eCommerce & ERP Software Year-End 2022 Activity Report

Despite a slow year for broader tech M&A in 2022, the Supply Chain Software industry generated an impressive 325 M&A deals totaling $40.9B. These deals include Thoma Bravo's 2 successful multi-$B takeovers of Anaplan and Coupa, as well as Transportation and ERP Software being the most active sectors with 89 and 85 deals, and Aptean and Constellation Software maintaining their positions as top acquirers with 27 and 25 deals.

The total amount of capital raised decreased from $18.1B in 2021 to $11.8B in 2022, the number of private placements remained healthy at 309 - a remarkable increase from the two years leading up to COVID, which saw an average of 125 private placements per year. In 2022, there were a total of 32 financings that exceeded $100M. The Transportation sector received 119 investments totaling $4.7B in 2022, compromising roughly 40% of all capital.

Public Supply Chain Software valuations have held up over the last year, stabilizing at a healthy 7x trailing revenue, higher than AGC's SaaS Index. eCommerce fulfilment businesses saw a significant decline in activity, the result of hybrid tech-3PL model with lower gross margin profiles combined with softening in retail eCommerce activity. Transportation remains King in the sector, but is starting to feel more significant headwinds in early 2023 as freight volumes have been in decline for several quarters. Enterprise customers are taking their time making new software investments.

2023 will continue to see solid activity across the Supply Chain Software spectrum, with as many, if not more, billion-dollar take-private transactions, plenty of mid-market consolidation M&A, and more new capital going into Transportation, Planning and Procurement/Supplier Management software vendors.