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Archive for the ‘Technology/Media’ Category

Industry News From Technology, Media & Telecom

By Dan Vermeire | Sep 28, 2015

Technology, Media & TelecomThere appears to be no end in sight to M&A activity in the ever-evolving Technology, Media & Telecom space as new applications, software and hardware continue to have meaningful global impacts. Demand for software applications for smartwatches and other wearables is expected to increase as more consumers and businesses adopt the devices. 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 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.

Demand for enterprise software will drive overall IT spending growth during 2015, according to a recent report from Gartner. The market research firm forecasts worldwide spending on enterprise software will increase 5.5 percent year-over-year in 2015, reaching $335 billion. Outpacing the projected 2.4 percent increase in overall IT spending, the uptick in global software expenditures is expected despite growing pricing pressure in key market segments such as customer relationship management (CRM) and database management, where a shift to cloud-based offerings is fueling competition between incumbent enterprise vendors and a host of newer cloud specialists.

  • US retail sales for electronics and appliance stores, a potential measure of demand for computer software, decreased 1.2 percent in the first seven months of 2015 compared to the same period in 2014.
  • Total US revenue for computer systems design and related services rose 4.6 percent in the first quarter of 2015 compared to the previous year.

Posted by Dan Vermeire.

Technology, Media & Telecom M&A News

By Kim Levin | May 15, 2015

Binary CodeIn the ever-evolving Technology, Media & Telecom sector, M&A activity is as hot as ever as technologies change and cannibalize obsolescence. Hot sectors for the remainder of 2015 and beyond include cyber security, SAAS and big data.

US state and local government agencies will increase spending on information technology products and services by more than 3 percent annually over the next five years, according to market analysis firm Deltek. IT investments at the state and local levels are forecast to grow from about $60 billion in 2014 to $70 billion by 2019. Health care and public education are key growth areas for IT spending as states look to modernize Medicaid and update operational, instructional, and research technologies at schools to meet surging student enrollment. In addition, data center modernization, cloud storage, and mobile communications are expected to drive IT spending growth for general government operations.

The Internet of Things (IoT), defined as a network of dedicated physical objects that contain embedded technology to sense or interact with their internal state or external environment, is expected to grow rapidly in the near future. Some 4.9 billion connected “smart” devices will be in use in 2015, up 30 percent from 2014, according to Gartner. As many as 25 billion devices are expected to be connected by 2020. The IoT can be viewed as an ecosystem that includes not only things, but also communication, applications, and data analysis, all of which will drive a growing demand for information technology services to support them. Manufacturing, utilities, and transportation are forecast to be the top three verticals using IoT in 2015. Gartner estimates that IoT will support total services spending of $69.5 billion in 2015 and $263 billion by 2020.

Total US consumer spending, a driver for the IT needs of consumers, rose 0.3 percent, primarily from service expenditures, in February 2015 compared to the same month in 2014. US corporate profits, an indicator for corporate investment in information technology, fell 0.2 percent in the fourth quarter of 2014 compared to the same period in 2013. Total US revenue for computer systems design and related services rose 4.7 percent in the fourth quarter of 2014 compared to the previous year.

Posted by Arun Batavia.

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

Technology, Media & Telecommunications M&A News

By Kim Levin | Mar 06, 2015

technology, media & telecommunicationsM&A activity for North American based target companies in Technology, Media & Telecommunications (TMT) sector for Q4 2014 included 100 closed deals according to data published by industry data tracker FactSet, with an average enterprise value of $212 million. Among the three subsectors the most activity continues to be in the telecommunication space as the highly competitive mobile market drives consolidation.

In addition, smaller deals by companies looking to gain technology, media & telecommunications market share have boosted the deal environment.

Total US revenue for wireless telecommunications carriers, except satellite, rose 4.4 percent in the third quarter of 2014 compared to the previous year. US paging, cellular, and wireless telecommunications is forecast to grow at an annual compounded rate of 7 percent over the next three years.

Posted by Arun Batavia.

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

Technology, Media & Telecom Industry News

By Kim Levin | Jan 02, 2015

Hand with Cell PhoneThe market for wireless communication between objects such as cars and wearable items such as smartwatches and smartglasses represents a significant opportunity for telecommunications providers. The machine-to-machine (M2M) market is forecast to bring in $252 billion between 2015 and 2019, according to technology research and advisory firm Ovum. Global telecom operator revenue share of the total cellular M2M market is set to reach $25 billion by 2019.

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


Q3 Technology, Media & Telecom M&A Industry Report

By Kim Levin | Oct 24, 2014

ITIPG-BinaryM&A activity for North American based target companies in the Technology, Media and Telecom sector for Q2 2014 included 750 closed deals, according to data provided by S&P Capital IQ. Industry insiders believe M&A activity in the sector for the remainder of 2014 will continue to increase, according to a survey released June 5 by international law firm Morrison & Foerster LLP and tech research firm 451 Research LLC. The report polled 157 C-level and business development executives, general counsel, as well as VC and private equity figures in the Technology, Media and Telecom. Approximately 72 percent of respondents, polled in mid-April, said they planned shift focus toward M&A activity through the end of the year, up from 50 percent last November.  Cash on the balance sheet for strategics and good financing conditions for LBO transactions in addition to a desire for growth through acquiring new technologies were cited as factors that should  M&A. Only 4 percent of those polled expect activity to decrease, the report said.

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


Q2 Technology, Media, Telecom M&A Update

By Kim Levin | Jun 27, 2014

Circuit Board and FilamentsM&A activity in the Technology, Media & Telecom sector for North American based target companies in Q1 2014 included 675 closed deals according to data provided by S&P Capital IQ. The average deal value was $119 million with strong average revenue multiples at 2.92. According to MergerMarket, an industry data source, Q1 2014 was the third quarter during the last twelve months to see TMT M&A exceed the value of the Energy, Mining & Utilities sector. Telecom has been the best-performing industry among the S&P 500 over the past year and the Media & Technology industries performed above average during the global downturn in 2008. As the economy improves, M&A activity in the space has continued to heat up.

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

Technology, Media and Telecom Q1 M&A Update

By Kim Levin | Apr 18, 2014

ITIPG-Inside a ComputerM&A activity in the North American Media and Telecom sector for Q4 2013 through February 14, 2014 included 334 deals announced or closed according to data provided by S&P Capital IQ.  According to a report from international consulting firm PriceWaterhouseCoopers, the advertising and marketing, communications (telecom), and broadcasting subsectors were the big drivers of deal value in 2013 and the activity will likely continue in 2014 as large strategics look to consolidation for growth. Broadcasting deal value increased by $20.5 billion, from $5.8 billion in 2012 to $26.3 billion in 2013. Recently, deal value in the telecom and communications space has been dominated by large transactions, including Softbank’s $20.1 billion acquisition of Sprint Nextel in 2012. As the use of mobile devices and the appetite for big data continues to grow, this space should be as active as any for the foreseeable future.

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

Technology, Media and Telecom Q4 M&A Update

By Kim Levin | Feb 07, 2014

TechnologyM&A activity in the North American Information Technology, Media, and Telecom sector for Q3 2013 was up nearly 200% from last year, with 740 deals announced or closed in the period according to data provided by S&P Capital IQ. Although deal count pared 6% year-over-year, aggregate transactional values were on track to reach levels not seen since 2007. The Telecommunications sector continued to see the biggest deals with Vodafone’s $58.9 billion purchase of Verizon Wireless. Media companies paid higher values for acquisitions with an average deals size of $819.3 million compared to $139.7 million by the Technology companies.

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

Technology M&A Update

By Kim Levin | Nov 15, 2013

BinaryAccording to a report from global consulting firm PwC, closed software transactions in the second quarter declined over the previous quarter as well as year-over-year. However, an uptick in announced and rumored deals points to a rise in M&A activity for the remainder of the year. Private equity buyers took a more active role in software M&A with deals announced across the spectrum of deal size, including some of the largest transactions announced so far this year.

Read the Entire Technology 3rd Quarter Newsletter Here