After last week’s Lack of SaaS Consolidation post, we just had two major SaaS exits announced in the last 24 hours:
- Vista Equity Partners to Acquire Marketo for $1.8 Billion
- Salesforce Buys Demandware for $2.8 Billion
With relatively few SaaS exits recently, these two are huge. What to make of it? Here are a few thoughts:
- SaaS has much more growth ahead than public markets even priced in
- Market leaders get a serious premium
- Consolidation will eventually happen for the category leaders
- Plan on 10+ years for the largest of SaaS exits
- Look for more of these huge exits over the next five years (Zendesk, Shopify, HubSpot, etc.)
It’s a great time to be in SaaS and we have many years of growth ahead of us.
What else? What are some more thoughts on these recent SaaS acquisition announcements?