San Ramon, CA, December 08, 2011 -- martinwolf|M&A Advisors today released the MW Index®, the first-ever Index measuring enterprise value of technology services companies. The Index reveals that SaaS companies have increased in value by 313% since January 2009, more than double the growth in value of other tech services sectors and outpacing the NASDAQ average growth rate of 168%.
The MW Index is a proprietary analysis by martinwolf, a leading middle market IT M&A advisory. The MW Index is an index whose securities are weighted according to the market value of their outstanding shares. It measures 120 companies traded in the U.S. stock markets (NYSE, NASDAQ and OTC) in the following categories:
• IT Services & Business Process Outsourcing (BPO) - 52 companies, including 7 in BPO
• IT Supply Chain Services - 23 companies
• Software - 45 companies, including 20 in SaaS
The MW Index starts on December 31, 2007 with a value of 1,000. All companies in the Index are on Scoreboard (see: http://martinwolf.com/mw-intelligence ).
According to the Index, the January 1, 2009 versus October 31, 2011 enterprise values in each sector were as follows:
•IT Services & BPO +150% growth -- (from 708.02 to 1062.45)
•IT Supply Chain +142% growth -- (from 559.68 to 793.97)
•Software +154% growth -- (from 663.10 to 1021.92)
•SaaS +313% growth -- (from 465.97 to 1459.29)
•NASDAQ (actual) +168% growth (from 1540.25 to 2592.41)
According to Marty Wolf, president & founder of martinwolf, "For the next 24 months we expect SaaS companies to continue to increase in value. Growth for SaaS companies in specialized services such as financial services and healthcare will be especially strong. In addition, the growth of specialized SaaS offerings such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) will outpace SaaS growth in the same period.
To see the complete MW Index, go to http://martinwolf.com/mw-index.
martinwolf is the world's leading middle market IT M&A advisory. Since 1997, the firm has completed more than 100 transactions in six countries. Its knowledge and experience with IT outsourcing and managed services combined with its disciplined approach, which includes a proprietary, proven, step-by-step work plan customized for each client, has produced one of the highest transaction completion rates in the industry.
martinwolf is a member of the Merrill Lynch PS Referral Network and is an exclusive strategic partner to ICICI Bank, India's leading private bank, for acquiring U.S. IT companies. Martinwolf is a member of the FINRA and SIPC. For more information, visit www.martinwolf.com