Software-as-as-Service providers are highly coveted acquisition targets, because they generate recurring revenue streams, says Plexus Capital’s Michael Becker in a video interview with Mergers & Acquisitions at the ACG Los Angeles Business Conference.

BECKER: What we like the most about software services and software is really the recurring nature of it. In lack of a better word, it lends itself to leverage. Because of the granularity of the customer, the recurring nature of it, that’s really what we like. Everybody likes it, so multiples of leverage tend to go up higher on software as a service or software businesses.