Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Business Services Industry Sector

By Brad Purifoy | May 14, 2019

The report below gives a good overview of the second quarter M&A activity in the Business Services Industry Sector. M&A activity for North American based target companies in the Business Services sector for Q1 2019 included 443 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in April when Juniper Networks, Inc. acquired Mist Systems, Inc., a portfolio company of NTT DOCOMO Ventures Inc, GV Management Co LLC, Norwest Venture Partners, Lightspeed Management Co LLC, Kleiner Perkins Caufield & Byers LLC, and Cisco Investments for US$405 million in cash. The acquisition would allow Juniper Networks to enhance its presence in the cloud-managed segment of the wireless networking market. Mist Systems is located in Cupertino, California and provides mobile related wireless network services.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for professional services, rose 7.4% in the fourth quarter of 2018 compared to the same period in 2017.
  • US personal income, which drives consumer demand for professional services, rose 4.2% in February 2019 compared to the same month in 2018.
  • Total US revenue for professional, scientific, and technical services rose 5.6% in the fourth quarter of 2018 compared to the previous year.

Posted by Brad Purifoy.

Read the Entire Business Services 2nd Quarter Newsletter Here

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