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      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Friday
    Mar092012

    SECURITY SOFTWARE M&A

    There continues to be M&A interest pertaining to Internet-based (i.e. cloud security) software. In this post, we’re highlighting three recent transactions. The companies that were acquired offer either cloud based and/or Software-as-a Service (SaaS) cyber security solutions in the space.

    This week, TrustWave Corp. announced its acquisition of M86 Security. According to TrustWave, one of the key objectives of the acquisition is to incorporate Web security into its product portfolio.

    Two weeks ago, Juniper Networks announced its acquisition of Mykonos Software, and Alert Logic acquired Armorlogic. Mykonos Software uses deception technology to prevent hackers in real-time while Amorlogic develops web applications to proactively deter cyber attacks.

    In addition, social networking sites are beginning to take necessary steps and investments to secure their users data, which is an ongoing concern. Twitter’s January acquisition of Dasient, a cloud based technology company that helps avert malware attacks, is just one example.

    Tuesday
    Mar062012

    BANK TECHNOLOGY AND SOFTWARE M&A

    There have been several recent software mergers and acquisitions in the bank technology segment. 

    The largest by far was Misys’ announced merger with Temenos Group, a provider of banking software systems to a diverse array of financial institutions, for approximately $2 billion. However, just today, Temenos was granted an additional four weeks by a UK takeover panel to prepare its offer. If the merger talks are cancelled, Misys has stated that it plans to evaluate other approaches.

    A related bank technology transaction was Sopra Group’s announcement that it will buy a majority stake in Callatay & Wouters. Sopra will then merge Callatay & Wouters’ banking software package with its own products to create a new banking software outlet.

    Another February deal in this space was Integrated Bank Technology’s acquisition of Beacon Software. Beacon supplies software and hosted solutions, including in-house internet and mobile banking services, to community financial institutions.

    Tuesday
    Feb282012

    RETAILERS ARE BUILDING THEIR OWN DIGITAL MARKETING DIVISIONS

    As we noted in our Online and Mobile Industry M&A press release, large retailers are becoming increasingly active in digital marketing. We mentioned Walmart’s acquisition of Kosmix Corporation, a social media company, for $300 million. Kosmix is now part of @WalmartLabs, the retailer’s social and mobile commerce platform. In early January, @WalmartLabs acquired Small Society, a company that helps organizations create iOS applications for Apple devices.

    Other retailers have completed deals related to digital marketing as well. For instance, The Home Depot announced its acquisition of Redbeacon.com on January 20th. 

    Redbeacon utilizes technology that connects homeowners to local service professionals. As an example, Redbeacon's algorithm is capable of incorporating data from a consumer’s Facebook account in order to make tailored suggestions on which professionals users should hire.

    In addition, online retailer Amazon.com acquired Quorus in the fourth quarter of 2011. Quorus develops marketing and social shopping applications for retailers, allowing companies to communicate and live chat with prospective customers based on the products they’re interested in purchasing.

    These acquisitions by Walmart, The Home Depot, and Amazon.com shows there’s interest among retailers in growing market share by expanding established brands through social media.

    Tuesday
    Feb212012

    WEALTH MANAGEMENT M&A 

    There were two similar deals last week relating to wealth management in the capital markets space.  

    SEI Investments announced its acquisition of select assets from NorthStar Systems. With a greater level of front-office automation now in place, this transaction will allow the investment processing company to strengthen its portfolio of business outsourcing solutions. SEI identified a pressing need for additional technology to help with its new Global Wealth platform.

    A related transaction was Envestnet’s announced acquisition of Tamarac. Envestnet provides a wide array of wealth management software and advisory solutions to financial advisors. This acquisition will enable Envestnet to integrate Tamarac’s expertise within the Registered Investment Advisors (RIA) marketplace.

    Nearly a week prior, Envestnet announced its acquisition of Prima Capital Holding, a company that offers due diligence, research applications, and modeling services to financial services firms in the wealth management industry.

    Our 2011 Financial Technology M&A press release noted a robust level of capital markets activity and an increase in consumer focus on wealth management strategies.

    Thursday
    Feb162012

    SOFTWARE M&A IN THE MOBILE APP SEGMENT

    It has been almost a month since Twitter acquired Summify, the creator of a social news app. Summify’s mobile app scans people’s news feeds, aggregating the content most relevant to individual users as real-time news spreads through social networking sites. 

    The unique summaries are based on several factors, including how often someone’s followers on Twitter shared the story and/or the number of their friends who “liked” it on Facebook. These news summaries can be sent by email or straight to a mobile device.

    In our Full Year Software Industry M&A press release, we said that deal volume in the mobile app segment has grown more than 60% since 2010. Google, Facebook, and RIM continue to be activity leaders in the mobile app space. Each company, looking to expand their smartphone offerings, had four such transactions in 2011.