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      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Entries in Acquisitions (152)

    Monday
    May202019

    MARTIN MAGIDA SERVES AS EXPERT PANELIST DURING WEBINAR

    Law firm Robinson & Cole hosted a webinar last week entitled "Getting Your Business Ready for a Sale Transaction." Martin Magida, Managing Director at Berkery Noyes, served as an expert panelist.

    The panel of industry professionals discussed key issues facing businesses preparing for a sale transaction, including identifying transaction resources, preparing early stage documentation, maximizing value, and managing risks.

    A recording of the webinar can be viewed here.

    Monday
    Jan142019

    SOFTWARE M&A VALUE SURGES, DRIVEN BY INFRASTRUCTURE DEALS

    According to Berkery Noyes' Software report for Full Year 2018, total deal volume remained about constant on a yearly basis. Private equity backed volume improved nine percent whereas strategic volume declined four percent. Overall value rose 70 percent, from $134.63 billion to $229.54 billion. In terms of valuations, the median revenue multiple year-over-year improved from 2.3x to 3.1x, while the median EBITDA multiple saw a slight uptick from 13.3x to 13.9x. 

    The industry’s largest transaction in 2018 was IBM’s announced acquisition of Red Hat, which provides open-source software products to the enterprise community, for $32.95 billion. The Red Hat acquisition was the second largest industry deal ever tracked by Berkery Noyes, following Dell’s acquisition of EMC Corporation for $67.48 billion in 2015.

    M&A activity in the Infrastructure Software segment stayed about the same over the past year. However, the segment was responsible for four of the overall industry’s top five highest value deals in 2018. Along these lines were IBM’s previously mentioned acquisition of Red Hat for $32.96 billion; Broadcom’s announced acquisition of CA Technologies, an IT management software and solutions company, for $18.38 billion; KKR’s announced acquisition of BMC Software, which also offers cloud and IT management solutions, for $8.5 billion; and Microsoft’s announced acquisition of GitHub, which provides code hosting services that allow developers to build software for open source projects, for $7.5 billion.

    Upon examination of Infrastructure acquirers in 2018, private equity firm Thoma Bravo (either directly or through an affiliated business) was active with several acquisitions including:

    • Imperva, a cybersecurity company that offers activity monitoring and risk management solutions for critical business data and applications, for $1.81 billion;
    • Veracode, a provider of cloud-based application intelligence and security verification services, for $950 million; 
    • XaTester, which delivers automated unit testing to mainframe DevOps teams;
    • Centrify Corporation, an identity and access management platform;
    • Avecto, an endpoint privilege management and application control company;
    • LogRhythm, which offers security analytics, log management, network and endpoint monitoring; and
    • Lieberman Software, a cybersecurity business that isolates and contain data breaches.

    “Acquisition activity across the software marketplace is rooted in sound strategy as major technology companies seek greater mass and diversity, formerly emerging technologies have matured, and financial buyers look to invest in quality assets,” said James Berkery, Managing Partner at Berkery Noyes.

    Monday
    Apr162018

    MARTIN MAGIDA TO SPEAK AT NYC TECHNOLOGY GROWTH STRATEGY FORUM

    Consulting firm Simon-Kucher & Partners is hosting an event that will explore how technology, software, media, and communications companies design successful growth and monetization strategies.

    The Annual NYC Technology Growth Strategy Forum, set to be held on May 8th, is geared towards executive leadership and senior management. Martin Magida, Managing Director at Berkery Noyes, will deliver a presentation called "Companies are Bought, not Sold - Preparing Your Company for a Successful Exit."

    Tuesday
    Sep122017

    MARTIN MAGIDA TO SPEAK AT THE 3RD ANNUAL ACG NEW ENGLAND FALL CONFERENCE

    Martin Magida, Managing Director at Berkery Noyes, will be speaking at the 3rd Annual ACG New England Fall Conference later this month. The event is set to take place on September 18th and 19th in Newport, Rhode Island.

    Martin's panel is going to cover "The Good, the Bad, and the Ugly in Marketing Deals". Topics will include, how can PE funds attract more/better deal flow from intermediaries and other deal professionals; and how can Ibankers get the attention of PE investors for their deals?

    Friday
    Aug182017

    ONLINE M&A VOLUME BEING DRIVEN BY THE COMMUNICATIONS AND E-COMMERCE SEGMENTS

    Berkery Noyes’ Online and Mobile report for first half 2017 revealed that transaction volume increased five percent on a half year basis. Of note, private equity deal activity rose 21 percent. Aggregate industry value fell 37 percent, from $83.25 billion to $52.62 billion. There were five transactions in first half 2017 with disclosed vales above the $1 billion threshold, compared to 16 such deals in second half 2016. The peak for volume and value over the last 30 months occurred in first half 2016.

    As for the Communications segment, volume improved 15 percent in first half 2017, making it the sector with the largest gain in deal activity. High profile segment transactions year-to-date included Atlassian’s acquisition of Trello, a web-based collaboration software and project management service, for $425 million; and BICS’ announced acquisition of TeleSign, a communications platform as a service (CPaaS) company focused on authentication and mobile identity services to Internet and digital service providers, for $230 million.

    M&A activity in the E-Commerce increased 12 percent in first half 2017. Notable segment transactions year-to-date included PetSmart’s acquisition of Chewy, an online retailer for pet products, for $3.35 billion; Amazon’s announced acquisition of Souq, a Dubai-based online retailer, for a reported $650 million; and CVC Capital Partners’ announced acquisition of Etraveli, a global e-commerce platform for flight tickets, for $569 million.

    Deal volume in the E-Marketing & Search segment decreased three percent on a half year basis. Notable segment transactions thus far in 2017 included Oracle’s acquisition of Moat, an ad measurement company, for a reported $850 million; and Vector Capital’s acquisition of Experian’s Cross-Channel Marketing business for $300 million.

    “Programmatic buying, native advertising, and retargeting presents an opportunity for the traditional media players to reach their audiences on a variety of platforms,” said Vineet Asthana, Managing Director at Berkery Noyes. “The ad tech space is getting crowded and should be ripe for consolidation moving forward. Acquirers in the middle market seem to be especially keen on picking up digital companies that have either a regional focus or differentiated technological offerings.”