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What’s a Mature SaaS Company at $240m ARR Really Worth? Maybe 3.6x ARR

  • Sharefile, a mature SaaS company, has been acquired for $875 million with an ARR of $240 million, resulting in a valuation multiple of 3.6x ARR.
  • The company was bootstrapped for 6 years before being acquired by Citrix in 2011, likely for around $100-150 million.
  • The low valuation multiple can be attributed to the company's slow growth and the acquirer's negative growth rate of -2.3%.
  • While the deal makes sense for the acquirer, it highlights the importance of focusing on growth rather than efficiency in order to achieve higher valuations.

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