Young Guns vs. Megavendors – April 2016 M&A Market Update

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Apr 12, 2016

Young Guns vs. Megavendors – April 2016 M&A Market Update

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The complete April M&A Market Update on the sectors we cover is HERE.

The press was filled this month with mega-deals such as Deutsche Börse coming together with the London Stock Exchange in a $30 billion merger; Markit and IHS merging in a $10 billion deal; and Nasdaq acquiring the ISE Options Exchange.

But for us, it’s some of the smaller deals this past month that seem both interesting and particularly relevant in light of some of our recent blog pieces. Earlier this week, my colleague Paul Friday wrote about the increasing use and influence of technology in the Wealth Management Industry; a week or so before that, our Afsaneh Naimollah wrote about the impact of technology on our healthcare system; and about a month ago, Jeff Trongone wrote about the evolution of technology in Business Intelligence.

One of the things that these pieces – and most of our April 2016 M&A Market Update – have in common is that the technology they are writing about is often created by young, aggressive companies that recognize that many current software applications require significant IT support, custom configuration, lengthy implementation, and stringent data governance. They are using the latest cloud, SaaS, and other approaches to make important functions easier, more intuitive, and less expensive. The megavendors have noticed; they continue to pour money into R&D and into buying some of the more promising young firms. The private equity world has also noticed and is hot after them too. That’s precisely why we see so many transactions. It’s a good time to be in this business. Details on some of the more interesting deals are in the report that follows. They include:

  • Sykes Enterprises (NASDAQ:SYKE) agreed to acquire Clear Link Technologies for $207mm;
  • Broadridge (NYSE:BR) has made a strategic investment and entered into a referral, sales and marketing alliance with LiquidX for an undisclosed sum;
  • Riverside Partners (Boston, MA) completed an undisclosed majority equity investment in Bottom Line Systems;
  • Allscripts (NASDAQ:MDRX) and GI Partners agreed to acquire Netsmart Technologies for $950mm;
  • Micro Focus International (LSE:MCRO) agreed to acquire Serena Software for $540mm in cash;
  • FinTech Acquisition Corp. (NASDAQ:FNTC) agreed to acquire CardConnect through a reverse merger transaction for $438mm;
  • Domo (American Fork, UT) raised $131mm in a Series D round led by existing investors BlackRock and Credit Suisse. The round valued the company at $2bn.

In other news, we were pleased this month when the M&A Advisor recognized our own Jeffrey Trongone with its 7th Annual Emerging Leaders Award, which recognizes young M&A, Financing and Turnaround professionals who have reached a significant level of success and made notable contributions to both their industry and their communities. Congratulations, Jeff.

Read this month’s complete M&A Market Update HERE.

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