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Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Technology/Media’ Category

Fall 2021 | M&A Report In The Semiconductors & Advanced Materials Industry Sector

By Gunther Hofmann | Nov 15, 2021

The report below gives a good overview of the Fall 2021 M&A activity in the Semiconductors & Advanced Materials Industry Sector. During the pandemic, the semiconductor industry had remarkable success and has become highly prevalent in finding solutions for a variety of economic and public health issues, but it still faces enormous hurdles. One of the most significant issues is the worldwide scarcity of semiconductors. There was an unexpected high demand for semiconductors, which were required during the pandemic to enable remote healthcare, work-at-home, and virtual learning. The scarcity is still affecting a variety of downstream industries, including automobiles, consumer electronics, household appliances, industrial robots, and a variety of other essential items. The semiconductor industry is expected to expand 17.3 % in 2021, compared to 10.8% in 2020, according to a report by International Data Corporation (“IDC”). By the middle of 2022, the industry is anticipated to be normalized and balanced, with the possibility of overcapacity in 2023. In July 2021, global semiconductor sales remained strong, with high demand in all key regional markets and semiconductor product categories. According to data published by The Semiconductor Industry Association (“SIA”), worldwide semiconductor industry sales were $45.4 billion in July 2021, up 29.0 % from $35.2 billion in July 2020. Europe had the largest year-over-year sales growth of 38% in 2021, followed by Asia Pacific (30.9 %), China (28.9%), the Americas (26.8%), and Japan (20.9%).

Posted by Gunther Hofmann.

Read the Entire Fall 2021 Semiconductors & Advanced Materials Report Here


Fall 2021 | M&A Report In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Nov 04, 2021

The report below gives a good overview of the Fall 2021 M&A activity in the Technology Industry Sector. The technology, media, and telecommunications industry is rapidly evolving, due to increased investor interest. The sector experienced increased investments driven by initial public offerings of special-purpose acquisition companies, and venture capital funding during the initial period of 2021. This industry has significant potential for growth due to large capital inflows. The rapid pace of technological change, due to the impact of Covid-19 pandemic, is driving companies to continuously innovate to transform their business and gain a competitive advantage. However, the technology, media, and telecommunications industry’s capital, strategic, and operational decisions are being influenced by geopolitical uncertainty, ESG/climate crisis and awareness, and inclusion & diversity realizations. Currently, technology demand is rising due to increased global IT spending and swifter hardware sales recovery. The adoption of 5G networking and devices is increasing, with the prospect of more efficient data processing, lower network costs, and increased network density on the horizon.

Posted by Dan Vermeire.

Read the Entire Fall 2021 Technology, Media and Telecom Report Here


Summer 2021 | M&A Report In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Aug 17, 2021

The report below gives a good overview of the Summer 2021 M&A activity in the Technology, Media and Telecom Industry Sector. The COVID-19 pandemic has led to the increase in demand for a variety of technological solutions. Ecommerce, videoconferencing, electronic signature, collaboration, and cloud-based applications, which had a strong revenue growth in 2020, will continue to grow in 2021 at a normal pace. In 2021, it is expected that the technology businesses would upgrade their supply chains to improve transparency and resiliency. The technology companies would enhance its digital transformation through cloud, everything-as-a-service (XaaS), and edge intelligence. It will also pursue strategic acquisitions to boost its technology and talent capabilities. Technology companies must develop solutions to address vulnerabilities like supply networks complexity, while being environment friendly and flexible to deal with a volatile geopolitical environment. In addition to that, the most pressing risk for the technology industry is data security and privacy. Companies should tackle various regulatory and ethical hurdles related to data privacy and maintain public’s trust as recent incidents of high-profile data breaches have tarnished the reputations of some technology companies.

Posted by Dan Vermeire.

Read the Entire Summer 2021 Technology, Media and Telecom Report Here


Spring 2021 | M&A Report In The Semiconductors & Advanced Materials Industry Sector

By Gunther Hofmann | Jul 29, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Semiconductors & Advanced Materials Industry Sector. The semiconductor market registered a revenue growth of 6.5% in 2020 despite the impact of COVID-19 on the global economy as per research published by KPMG. The semiconductor industry will continue to grow due to the mainstream adoption of IoT, 5G and the increasing semiconductor needs of the automotive sector. The industry is expected to register a CAGR of over 6% during 2021-2025 as per research published by ResearchAndMarkets.com. According to the Semiconductor Industry Association, first-quarter sales of $123.1 billion were 17.8% more than the total from the first quarter of 2020 and 3.6% higher than the total from fourth quarter of 2020. International Data Corporation (IDC) forecasts the semiconductor market to reach $476 billion in 2021, a 7.7% year-over-year growth rate as the COVID-19 vaccines are circulated and global economies begin to gradually recover.

Posted by Gunther Hofmann.

Read the Entire Spring 2021 Semiconductors & Advanced Materials Report Here


Spring 2021 | M&A Report In The Technology, Media and Telecom Industry Sector

By Dan Vermeire | Jun 24, 2021

The report below gives a good overview of the Spring 2021 M&A activity in the Technology, Media and Telecom Industry Sector. The pandemic has ushered in a new reliance on tech, connectivity, and e-commerce. While many industries have been severely affected by the crisis, for the Technology, Media and Telecom sector (TMT) the economic impact has been largely neutral, or even positive for some industry segments.

With surges in online gaming, video streaming, mobile data consumption, remote working models, voice traffic, and residential broadband; the industry saw companies make several operational improvements in network infrastructures to cope with increased technological demands. The pandemic has shifted the spending toward resources that support digital methods of workforce collaboration, sales and customer experience delivery. The big data technology and rising number of connected devices across enterprises are increasing the demand for IT service management and information security management platform.

Posted by Dan Vermeire.

Read the Entire Spring 2021 Technology, Media and Telecom Report Here


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

By Dan Vermeire | Feb 28, 2020

The report below gives 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 Telecom sector for Q4 2019 included 421 closed deals, according to data published by industry data tracker FactSet.

One of the largest lower middle market transactions closed in November when PTC, Inc. acquired Onshape, Inc., a portfolio company of Commonwealth Capital Ventures, NEA Management Co LLC, AH Capital Management LLC and North Bridge Venture Partners for US$470 million in cash. PTC engages in the development and provision of software-based product management and development solutions. Onshape is a modern CAD system that unites advanced modeling tools and design data management in a secure cloud workspace that is accessible on any device.

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

By Dan Vermeire | Nov 27, 2019

The report below gives 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 2019 included 409 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in September when Commvault Systems, Inc. acquired Hedvig, Inc. for US$225 million in cash, contingent and future payout, subject to customary transaction adjustments. Hedvig is a portfolio company of Atlantic Bridge Ventures, Redpoint Ventures, True Ventures LLC, HC Capital Management LLC, Hewlett Packard Ventures LLC, Oman Investment Fund and EDB Investments Pte Ltd. Founded by Avinash Lakshman in 2012, Hedvig Inc is located in Santa Clara, California and provides software defined storage solutions.

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

By Dan Vermeire | Sep 12, 2019

The report below gives a good overview of the third 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 Q2 2019 included 306 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in April when Lear Corp acquired Xevo, Inc., a portfolio company of MMV Financial, Inc., Intel Capital Corp, Shaw Ventures, Inc. and SPARX Group Co Ltd, for US$320 million in cash. The acquisition would broaden Lear Corp’s connectivity portfolio and enhance its capabilities in software. Xevo provides solutions to automakers and merchants. The company was founded in 2000 and is headquartered in Bellevue, WA.

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

By Dan Vermeire | May 22, 2019

The report below gives 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 2019 included 328 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Envestnet, Inc. acquired PIEtech, Inc. for US$521.2 million in cash and stock. Envestnet engages in the provision of intelligent systems for wealth management and financial wellness. PIEtech develops financial planning software for financial advisors. It offers MoneyGuidePro, an Internet based financial planning software that helps advisors to create, implement and maintain investment strategies to meet financial goals. The company was founded in 1997 and is headquartered in Powhatan, VA.

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

By Dan Vermeire | Feb 26, 2019

The report below gives 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 Telecom sector for Q4 2018 included 403 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in December when Perforce Software, Inc., a portfolio company of Clearlake Capital Group LP, acquired Perfecto Mobile, Inc., a portfolio company of Vertex Venture Capital, Viola Ventures Ltd, Vodafone Ventures Ltd and Globespan Capital Management LLC, for US$200 million. The transaction expands the business offerings of Perforce. Founded in 2006, Perfecto is located in Burlington, Massachusetts and provides on-demand mobile testing infrastructure services.

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