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 2018 included 429 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in September when GrubHub, Inc. acquired Tapingo, Inc., a portfolio company of Viola Ventures Ltd, Khosla Ventures LLC, Shanghai Fosun Kinzon Equity Investment Management Co Ltd, QUALCOMM Ventures and Doll Capital Management, Inc., for US$150 million in cash, subject to standard closing conditions. Founded in 2012, Tapingo is located in San Francisco, California and offers a mobile shopping application.
Software, hardware and platforms are migrating to the cloud at a rapid rate as on-premise solutions phase out.
Industry Indicators
- US corporate profits, which indicate corporate demand for computer software, rose 7.7% in the second quarter of 2018 compared to the same period in 2017.
- US retail sales for electronics and appliance stores, a potential measure of demand for computer software, increased 3.0% in the first nine months of 2018 compared to the same period in 2017.
- Total US revenue for software publishers rose 17.4% in the second quarter of 2018 compared to the previous year.
- Total US revenue for computer systems design and related services rose 3.7% in the second quarter of 2018 compared to the previous year.
Posted by Dan Vermeire.
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