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.
Industry Indicators
- US corporate profits, which indicate corporate demand for computer software, rose 3.1% in the first quarter of 2019 compared to the same period in 2018.
- US retail sales for electronics and appliance stores, a potential measure of demand for computer software, decreased 4.6% in the first six months of 2019 compared to the same period in 2018.
- Total US revenue for computer systems design and related services rose 7.7% in the first quarter of 2019 compared to the previous year.
- Total US revenue for software publishers rose 15.4% in the first quarter of 2019 compared to the previous year.
Posted by Dan Vermeire.
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