General Atlantic and Oakley Capital are in exclusive talks to acquire Brevo in a deal valuing the French software firm at about €1 billion (US$1.2 billion).

The private equity firms are negotiating with major investors including Bridgepoint Group Plc, Partech Partners, and Bpifrance.

Bridgepoint and Bpifrance are expected to retain minority stakes, while Partech plans to fully exit its holding.

Brevo, formerly known as Sendinblue, offers a CRM platform with tools for marketing, sales, messaging, and customer data collection.

The Paris-based company reported €179 million (US$207.4 million) in annual recurring revenue in 2024 and serves clients such as Montblanc, eBay, L’Occitane, and LVMH.

A deal could be announced within days, but terms are not finalized.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ The deal reflects more conservative SaaS valuations despite strong fundamentals

Brevo’s €1 billion valuation represents roughly 5.6 times its €179 million annual recurring revenue, positioning it well below current SaaS market premiums.

High-growth SaaS companies currently trade at around 15 times next-twelve-months revenue, while the historical average sits at 7.6 times1. This suggests private equity buyers are securing Brevo at a more conservative multiple despite the company’s solid 26% revenue growth from €142 million in 20232.

The valuation approach mirrors broader private equity trends where firms target profitable, established SaaS businesses rather than chasing hypergrowth companies at premium multiples.

Brevo’s enterprise segment expansion, now representing 25% of revenue with clients including Carrefour and Louis Vuitton, demonstrates the recurring revenue quality that attracts PE investment2.

2️⃣ Timing aligns with massive CRM market expansion opportunities

The acquisition comes as the global CRM market experiences unprecedented growth, with projections ranging from $97.90 billion by 2025 to $262.74 billion by 2032 across different forecasts34.

This growth is driven by AI integration demands, with 61% of CRM systems expected to incorporate AI features within three years3. Brevo’s recent commitment to invest €50 million in AI over five years positions it strategically for this transformation2.