Archive for Tag: acquisition

Aug 26, 2016

Rational expectations (mostly) continue driving info tech M&A values upward.

Fintech, Healthcare IT, Market Update, Uncategorized , , , , , 0 Comments

The US equity markets are now officially in the midst of the second longest continuous rise ever – and they just keep on ticking. It’s been more than 2,700 calendar days since the 2009 bottom – without a 20% pull back. Can it continue? Can we surpass the to 3,452 day bull market that ended with the tech market crash in 2000? Maybe we can – at least in the dozen+ sectors of the information-technology industry that we follow and sometimes lead. Every week, we talk to the CEOs, Board members, investors and others connected with a wide range of…

Read More

Dec 3, 2015

GRC Keeps Rolling

In the News , , , , , , , , 0 Comments

The term GRC (Governance, Risk and Compliance) has been around for a while now. Gartner has covered it in one form or another since the early 2000’s. The last decade of regulations – Sarbanes-Oxley, HIPPA, Basel III, Solvency II, regional rules and more – have put unprecedented pressure on corporations, leading to the explosion of GRC solutions. Firms have shifted away from spreadsheets and homegrown solutions to GRC focused software vendors as GRC needs become more complex and involve a wider set of stakeholders. This market maturation brings the potential for a new wave of M&A consolidation as vendors race to…

Read More

Dec 1, 2015

No Need To Go Public?

In the News , , , 0 Comments

In yesterday’s Wall Street Journal Telis Demos and Corrie Driebusch presented a solid case for the downtick in IPOs – companies prefer to go the M&A route, especially in volatile financial markets. We concur but actually the M&A route is only part of the story. It’s important to think about why companies want to go public in the first place. Reasons may include liquidity for shareholders and employees, capital for growth, currency for acquisitions and probably ego, all are part of the IPO equation. As M&A bankers we discuss the viability of an IPO with a lot of businesses and…

Read More

Dec 1, 2015

FinTech Disruptors Drive Visa and Visa Europe Combination

In the News , , 0 Comments

Earlier this month, Visa Inc. announced that it had entered into an agreement to acquire Visa Europe for €21.2 billion (upfront consideration: €11.5 billion in cash and €5.0 billion in convertible preferred stock; contingent consideration: €4.7 billion). We believe this transaction makes strategic sense for Visa, and the valuation multiples were not as high as some have reported. Nevertheless, the integration, particularly related to technology, will be challenging as reflected by the $450 to $500 million in integration costs expected over the next 5 years. In addition, the ability for Visa Europe to move from a bank-owned, cooperative pricing model…

Read More

Oct 28, 2015

ICE Preempts IDC IPO Paying More than 5x Revenue to Acquire Interactive Data

In the News , , 0 Comments

On the morning of October 26, Intercontinental Exchange, Inc. (NYSE: ICE) announced that it has entered into an agreement to acquire Bedford, Massachusetts-based Interactive Data Holdings Corporation (“IDC”). According to the company, the transaction was valued at an enterprise value of $5.2bn or about 5.5x LTM revenue and 13.8x LTM EBITDA. Wow! We like IDC. They have a strong franchise in the data business for portfolio managers as well as several other market leading businesses. And there’s no question that this transaction is strategic for ICE. ICE will be able to tap into IDC’s wide array of fixed income data…

Read More

Back to Top