Welcome to the Global Technology Market Review – Q3 2019, Results International’s quarterly update on technology sector M&A activity and valuations. We’ve had a very positive quarter in both public and private markets as M&A activity and valuation performance trackers continue at high levels.
Technology Market Review Q3 – M&A activity and valuations:
- The UK healthtech market was notably strong this quarter; Babylon Health raised a $500m Series C at a £2bn valuation and Benevolent AI raised $90m at a valuation of $1bn, although reportedly at half the valuation of a prior round in April 2018.
- Two blockbuster deals highlighted strong deal making in the cybersecurity space; Symantec’s enterprise security assets acquired by Broadcom for $10.7bn and VMware’s buyout of publicly-listed Carbon Black for $2.1bn.
- Acquisition remains an active channel to build full-service cybersecurity offerings; Outpost24 has demonstrated this through its acquisition of Pwnie Express, a provider of threat detection for bluetooth, wireless and IoT devices. Results International, acted as the exclusive advisor to Outpost24 on the acquisition, which enables the company to assess and monitor cyber exposure more completely across infrastructure and web applications.
- Private equity money also continues to seek out leading opportunities in the space; Intragen, a leading pan-European identity and access governance (I&AG) consultancy received investment from FPE Capital, with Results International acting as exclusive financial advisor to Intragen.
- Personalisation and data-driven customer experience remains an active area for fundraising and M&A in the martech space; large B2C corporates Nike and McDonalds made a re-appearance following prior data-focused acquisitions, acquiring AI powered analytics business Celect and conversational AI business Apprente, respectively. Interestingly while most groups look to invest in data aggregation, WPP divested 60% of their stake in data marketing insights business Kantar to Bain Capital; valuing Kantar at $4.0bn.
- Strong private equity interest continues to drive investment in the enterprise software space, again making up nine of the top ten buyers by volume; 468 deals in total were announced in the quarter.
- Digital transformation remains a key theme; AppLearn, a digital adoption SaaS platform, secured investment from K1 Investment Management; Results International acted as exclusive financial advisor to AppLearn.
- The number of unique buyers (190) in the technology services space continued to grow, driven by groups seeking to build end-to-end offerings covering new and disruptive technologies (cloud, AI, automation, IoT).
We hope you enjoy the Global Technology Market Review Q3 2019, please do get in touch if you would like to discuss any of the themes with us. We look forward to speaking with you soon.