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Archive for the ‘Technology/Media’ Category

M&A News In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | May 16, 2018

The report below provides a good overview of the second quarter M&A activity in the Technology, Media and Telecom Industry Sector. M&A activity for North American based target companies in the Technology, Media and Telecom sector for Q1 2018 included 432 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Allen Media LLC, a subsidiary of Entertainment Studios, Inc., acquired Weather Group Television LLC, a portfolio company of Rosemont Solebury Capital Management LLC, AlpInvest Partners BV, Bain Capital Private Equity LP and Blackstone Corporate Private Equity, for $300 million. The acquisition is in line with the growth strategy of Allen Media LLC. Weather Group Television LLC is located in Atlanta, Georgia and broadcasts weather related information.

UBM, the company that puts on the annual Game Developers Conference, took a survey regarding which platforms developers currently consider the most important. Approximately 60 percent of the roughly 4,000 developers surveyed are currently working on a game that will be released on PCs.
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M&A News In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Mar 28, 2018

The report below provides a good overview of the first quarter M&A activity in the Technology, Media and Telecom Industry Sector.
M&A activity for North American based target companies in the Technology, Media and Telcom sector sector for Q4 2017 included 420 closed deals, according to data published by industry data tracker FactSet.
One of the notable transactions of the quarter was announced in November when private equity group Thoma Bravo, LLC acquired Barracuda Networks, Inc. for US$1.5 billion in cash. Under the terms of the transaction, Thoma Bravo paid US$27.55 in cash per Barracuda Networks share. This represented a 22.5% premium to Barracuda Networks’ 10-day average stock price prior to November 27, 2017. Barracuda Networks designs and delivers powerful yet easy-to-use security and data protection solutions. It offers cloud-enabled solutions that empower customers to address security threats, improve network performance and protect and store their data.
The technology sector continues to evolve as companies focused on the Internet of Things (IoT) continue to garner interest from investors and strategics looking acquire greater capabilities.

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M&A News In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Nov 17, 2017

The report below provides a good overview of the fourth quarter M&A activity in the Technology, Media and Telecom Industry Sector. M&A activity for North American based target companies in the Technology, Media and Telecom sector for Q3 2017 included 266 closed deals, according to data published by industry data tracker FactSet.

One of the more notable deals of the quarter was announced in September when Internet Brands, Inc., a portfolio company of Kohlberg Kravis Roberts & Co LP, acquired WebMD Health Corp for US$2.5 billion in cash. Under the terms of the agreement, Internet Brands paid US$66.5 in cash for each share of WebMD Health Corp. The transaction enhances the business portfolio of both companies.

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M&A News In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Oct 23, 2017

The report below provides a good overview of the 3rd Quarter M&A activity in the Technology, Media and Telecom Industry Sector.  M&A activity for North American based target companies in the Technology, Media and Telecom Industry sector for Q2 2017 included 296 closed deals, according to data published by industry data tracker FactSet.  The average purchase price was $167 million.

Social media continues to be a major force in media as users all over the world flock online and away from cable. Below is a graph illustrating the user count for the largest social media networks in the world.

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M&A News | Technology, Media & Telecom Industry

By Dan Vermeire | Apr 06, 2017

M&A News Technology – m&a news technologyOne of the largest transactions of the quarter in was completed in December when Roper Technologies, Inc. acquired Deltek, Inc., a portfolio company of Thoma Bravo LLC, for US$2.8 billion in cash. The transaction was funded through cash on hand, borrowings under Roper Technologies’ existing credit facility and new debt. The acquisition enables Roper Technologies to solidify its market position. Roper Technologies engages in the provision of engineered products and solutions for global niche markets. Deltek provides enterprise software and information solutions. Its products include project ERP solutions, enterprise information management, business development solutions, project and portfolio management solutions, HR and talent management solutions and professional services automation solutions. Read more »


Technology Industry M&A News

By Dan Vermeire | Nov 03, 2016

Technology Industry M&A NewsTechnology Industry M&A News for North American based target companies in the Telecom, Media and Technology sector for Q3 2016 included 483 closed deals, according to data published by industry data tracker FactSet. The average transaction value was $303 million.

On the public markets, stocks continued to surge higher during the quarter led by sector behemoth Alphabet (GOOGL). Q3 earnings per share minus items for the stock rose 23% to $9.06 while total revenue climbed 20% to $22.45 billion vs. consensus estimates of $8.60 and $22.05 billion.

Competition is intensifying in the fast-growing education software market as tech giants including Facebook, Amazon, and Google roll out new digital education products and services. Many of these early offerings are provided free to educators, but the companies are likely to use them as springboards to sell more advanced academic and institutional software to the education sector in the future, The New York Times reports. In summer 2016, Amazon unveiled a new online marketplace called Amazon Inspire, which gives teachers access to thousands of lesson plans and instructional materials at no cost. Facebook introduced a personalized digital learning platform that enables students to manage their own projects and assignments online and learn at their own pace. Google is another major force in the ed-tech sector: more than 60 million students and teachers now use its cloud-based Google Apps for Education software, and more than 5 million Chromebooks were sold to US schools in 2015, according to the International Data Corporation. Annual spending on education software and digital teaching materials at US pre-K through high schools is about $8.3 billion, according to the Software and Information Industry Association.

Industry Indicators

  • US retail sales for electronics and appliance stores, a potential measure of demand for computer software, decreased 2.8% in the first nine months of 2016 compared to the same period in 2015.
  • Total US revenue for software publishers rose 0.5% in the second quarter of 2016 compared to the previous year.

Posted by Dan Vermeire.

Read the Entire Technology, Media and Telecom 4th Quarter Newsletter Here


Technology M&A News

By Dan Vermeire | Aug 11, 2016

technology M&AReports from various industry observers present a mixed outlook on IT employment growth, according to Computerworld. Analysts use terms ranging from “modest” to “pre-recession” to describe recent industry hiring trends. Trade association CompTIA noted steep declines of about 96,000 IT jobs across all industries in May 2016 compared to the month before. That figure includes the impact of the approximately 37,000 telecommunications jobs not on payrolls due to a recent strike of Verizon workers, which has since been settled. Analyst group Foote Partners and industry group TechServe Alliance both said that once the Verizon strike is adjusted for, tech employment actually gained some 13,500 jobs that month. Analyst group Janco Associates is less optimistic, forecasting only 40,300 IT jobs will be created in 2016, down from 112,500 new IT jobs that were created in 2015.

Leading technology vendors are using acquisitions to quickly build Internet of Things (IoT) expertise and service capabilities. With a growing number of devices being embedded with software and sensors and connected to the Internet, a trend commonly referred to as IoT, companies with IoT service platforms have become hot commodities. Recent deals include Microsoft’s May 2016 purchase of Solair, an Italian provider of IoT products and services; Cisco Systems’ acquisition of IoT service platform provider Jasper in March 2016; and IBM’s acquisition of The Weather Company’s product and technology business in January 2016. Microsoft plans to integrate Solair’s technology into its Azure IoT Suite, Jasper will become Cisco’s IoT Cloud Business Unit, and IBM is using The Weather Company’s technology to form its Watson IoT Cloud platform. The new offerings should help the companies capture revenue in the rapidly expanding market, which will grow from $157 billion in 2016 to $662 billion by 2021, according to MarketsandMarkets.

  • Total US consumer spending, a driver for the IT needs of consumers, rose 0.9%, primarily from service expenditures, in May 2016 compared to the same month in 2015.
  • Total US revenue for computer systems design and related services rose 3.8% in the first quarter of 2016 compared to the previous year.

Read the Entire Technology, Media and Telecom 3rd Quarter Newsletter Here


M&A Industry News – Technology, Media & Telecom

By Dan Vermeire | Jun 23, 2016

M&A Industry News - Technology, Media & Telecom Technology giant Facebook had a very strong first quarter as earnings jumped 52% amounting to $5.4 billion. Approximately 82% of the growth came from the company’s mobile advertising platform. The website’s monthly active users jumped 21% year-over-year to 1.65 billion users per month.

One of the largest M&A deals of the quarter in the sector was information provider IHS (IHS) announcing plans to acquire its London-based rival Markit (MRKT), in a deal valued at $13 billion. The new company – IHS Markit – will have combined revenues of $3.3 billion and more than 50,000 customers globally, including 75% of the Fortune 500. This could have a large impact on the financial data sector, which is currently dominated by Thomson Reuters.

The biggest telecom announcement of the quarter was Vodafone, the world’s second-largest mobile operator by subscribers after China Mobile Ltd. Vodafone said it would pay €1 billion ($1.12 billion) to Europe-focused Liberty Global as part of the deal to combine their businesses in the Netherlands. Led by social media powerhouses Facebook and LinkedIn, North American technology equities had a very strong Q1.

The growing popularity of virtual reality (VR) systems such as Oculus Rift, Sony’s PlayStation VR, Microsoft’s HoloLens, and HTC’s Vive is creating demand for development of new 3D software. Shipments of virtual reality headsets are forecast to jump from just 140,000 in 2015 to 1.4 million in 2016 and up to 6.3 million in 2017, according to Gartner. Software for VR headsets primarily includes games and other consumer content for entertainment. However, an emerging opportunity comes from academic and business applications for training, simulation, and equipment troubleshooting. Examples include allowing medical students to explore human anatomy in 3D and helping companies attract potential customers through interactive product demos.

Industry Indicators

  • US retail sales for electronics and appliance stores, a potential measure of demand for computer software, decreased 2.2% in the first three months of 2016 compared to the same period in 2015.
  • Total US revenue for computer systems design and related services rose 1.8% in the fourth quarter of 2015 compared to the previous year.

Posted by Dan Vermeire.

Read the Entire Technology, Media and Telecom 2nd Quarter Newsletter Here


Media, Technology & Telecom M&A News

By Dan Vermeire | Apr 06, 2016

ITIPG-Global WavesMedia, Technology & Telecom – The growing popularity of virtual reality (VR) systems such as Oculus Rift, Sony’s PlayStation VR, Microsoft’s HoloLens, and HTC’s Vive is creating demand for development of new 3D software. Shipments of virtual reality headsets are forecast to jump from just 140,000 in 2015 to 1.4 million in 2016 and up to 6.3 million in 2017, according to Gartner. Software for VR headsets primarily includes games and other consumer content for entertainment. However, an emerging opportunity comes from academic and business applications for training, simulation, and equipment troubleshooting. Examples include allowing medical students to explore human anatomy in 3D and helping companies attract potential customers through interactive product demos.

The latest generation of hybrid tablets is gaining traction within the enterprise market, driving demand for business software optimized for the higher-performance 2-in-1 devices. Enterprise software vendors were initially slow to move into the mobile realm because few corporate customers worked with early-generation tablets, InformationWeek reports. Meanwhile, consumer demand has fallen sharply as larger, faster smartphones cannibalize sales. Global tablet shipments fell 12.6% in the third quarter of 2015 compared to a year earlier, according to research by IDC. To break out of the slump, device makers are shifting their focus to high-powered tablets with detachable keyboards and more computing power, such as Microsoft’s Surface Pro and Apple’s iPad Pro. These devices are more compatible with business-oriented apps like Microsoft Excel and PowerPoint, and they can also be more easily integrated with corporate enterprise systems — a key selling point for CIOs.

Industry Indicators

  • US retail sales for electronics and appliance stores, a potential measure of demand for computer software, decreased 5.4% in the first month of 2016 compared to the same period in 2015.
  • Total US revenue for computer systems design and related services rose 2.6% in the third quarter of 2015 compared to the previous year.

Posted by Dan Vermeire.

Read the Entire Technology, Media and Telecom 1st Quarter Newsletter Here


M&A News From Media, Technology & Telecom

By Dan Vermeire | Dec 31, 2015

Techonology, Media & TelecomMajor growth in Media, Technology & Telecom is forecast for the use of 3D printing in a variety of business applications, raising a host of data protection issues for IT professionals, according to a recent report in InformationWeek. IT workers will likely be called upon to address issues related to theft of intellectual property and to prevent counterfeit products from entering the market. For example, manufacturing companies may need to protect pictures and drawings of product designs to prevent unauthorized 3D printing of goods. Related IT tasks may include securing files and their transit over corporate networks, as well as limiting or blocking file sharing and the end user’s 3D printing of the files.

The recent launch of a wearable computing device by Apple could jumpstart the smartwatch category, creating new opportunities for software developers. The company launched a line of Apple Watches in nine countries in April 2015. Combining the functionality of a timepiece with communication capabilities and health-related applications, the devices will compete against offerings from LG, Pebble, Samsung, and Sony, among others. The burgeoning list of applications for the Apple Watch already includes business, home automation, music, news, sports, and travel apps, and the device’s long-awaited debut is expected to spur development efforts across the market. Good Technology, Microsoft, and Salesforce.com are among the companies developing collaboration, productivity, and sales apps for the Apple Watch, according to Network World. Game makers are also targeting the Apple Watch and other wearables, despite the challenge presented by the devices’ small screen size.

  • Total US revenue for computer systems design and related services rose 6.2 percent in the second quarter of 2015 compared to the previous year.
  • Total US revenue for software publishers rose 2.8 percent in the second quarter of 2015 compared to the previous year.

Posted by Dan Vermeire.

Read the Entire Technology, Media and Telecom 4th Quarter Newsletter Here