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Disruption is here to stay. Get used to it.

Disruption leads to paradigm shifts

Mar 13, 2016

Disruption is here to stay. Get used to it.

Enterprise Data, Fintech, Healthcare IT, Market Update, Newsletter , , , 0 Comments

For several years now, the dozen plus information technology sectors that we support have been strong for some, while quite disruptive for others. In Fintech, the press has focused on the digital revolution in customer behavior and the wave of virtualization currently sweeping financial services. It has to make the traditional providers nervous. In Enterprise Data, the buzz has been around the rise of big data analytics and how they are changing the way we understand the world (See the recent IBM Watson deal below and more thoughts on that HERE). In Healthcare IT the talk has been about the increasing use of technology, information, and tools that may fundamentally change the doctor-patient relationship. Read the full newsletter HERE. These are disruptive times. Get used to it.

These are times in which the use of technology to remove humans from both structured and unstructured processes has never had more momentum. Driverless cars are the tip of the iceberg. There is a long list of innovative firms finding creative ways to give non-technical users a vastly improved experience at a materially lower cost.

It’s a heady time to be in this industry. We’re pretty sure that the politicians won’t mess it up; even though we are sure they will try. Some of the more interesting transactions over the past month include the following:

  • IBM Watson Health (Armonk, NY) agreed to acquire Truven Health Analytics for $2.6bn, valuing the company at an implied 5.9x LTM Revenue and 35.7x LTM EBITDA;
  • TSYS (NYSE:TSS) agreed to acquire TransFirst from Vista Equity Partners for $2.4bn in cash, valuing the company at an implied 13.8x adjusted EBITDA;
  • ResMed (San Diego, CA) agreed to acquire Brightree for $800mm, valuing the company at an implied 7.1x LTM Revenue and 18.6x LTM EBITDA;
  • Insight Venture Partners (New York, NY) agreed to acquire Diligent for $4.90 per share, valuing the company at approximately $624mm, including cash;
  • Oscar Insurance (New York, NY) raised $400mm in a funding round valuing the company at $2.7bn post money;
  • Telenor (OB:TEL) agreed to acquire Tapad for $360mm, valuing the company at an implied 4.0x 2016E revenue;
  • Snapdeal (New Delhi, India) raised $200mm led by Ontario Teachers’ Pension Plan, valuing the company at $6.5bn;
  • Nasdaq (NASDAQ:NDAQ) agreed to acquire Marketwired from OMERS Private Equity for CAD150mm (~$111mm).

Read our full March 2016 M&A Market Update HERE.

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