In 2019, SAP acquired lifecycle personalization provider Emarsys for $500M. At the time, Emarsys had grown from $135M ARR in 2017 (when I joined) to $175M ARR in 2019, a ~14% CAGR that valued the deal at roughly a 3x revenue multiple.
In this episode, I break down why SAP made the move, how Emarsys fit into the CX portfolio, and what perspective investors like Summit Partners and Vector Capital (likely) had in pushing for the exit. Iβll also explain why the price reflected Emarsysβ mid-market growth ceiling.
On a personal note, I share what it felt like inside the company β from the chatter about what might change, to the reality that almost nothing did β and how watching that exit firsthand sparked my obsession with M&A as the higher-level game behind SaaS.
Disclaimer: None of this is private or insider information. Everything shared can be found in, or reasonably inferred from, publicly available sources.
#BusinessGrowth #SaaSGrowth #B2BMarketing #GoToMarketStrategy #DemandGeneration
========================
π RESOURCES
========================
π PRE-REGISTER: THE UBIQUITY ENGINE
The new playbook on how breakout SaaS companies become everywhere at once β΄
π https://michaelbecker.org/ubiquityenginebook/
π© SUBSCRIBE: CONTENT CAPITALIST (SUBSTACK)
Breakdowns on SaaS growth, GTM systems, and content-driven revenue β΄
π http://contentcapitalist.substack.com
π WORK WITH ME: B2B SAAS ADVISORY
I build pipeline, conversion, and expansion systems for SaaS companies β from early-stage to $100M+ β΄
π https://michaelbecker.org/
π GET MY 1st BOOK, CONTENT CAPITALIST
How to turn content into a revenue engine that compounds β΄
π https://michaelbecker.org/product/content-capitalist-how-to-create-a-content-business-so-exclusive-customers-beg-to-buy-and-never-want-to-leave/
π CONNECT
π IG: https://www.instagram.com/officialmbecker
π LI: https://www.linkedin.com/in/mjbecker
β Subscribe. Share with someone building.
","author_name":"Michael Becker"}