A record $5.2Bn was invested in Work Tech during 1Q 2021 across 172 deals – all-time high levels both in terms of volume and value. The average investment size continued to grow, reaching $31.4M vs. $21.2M in the previous quarter. In terms of M&A, several major vendors pursued acquisitions, taking advantage of market conditions. 52 acquisition were announced in total – a slight pullback compared to the peak of 4Q 2020 but still high compared to historical levels. In the public markets, median valuation multiples for pure Work Tech companies expanded 19% to 9.0x CY2021 revenue vs. the end of Q4 ‘20. Productivity businesses pulled back from their peak, contracting by 25% over the same period, while valuation multiples for Diversified Work Tech and HR Services remained broadly stable.
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