The decline, steadiness and rise of enterprise mergers
Huge, billion-dollar deals are on many industry analysts' minds at the moment. Records are being broken left and right, such as the most expensive tech merger (Dell-EMC merger) and the groundbreaking advancement of processing through the Lam-Research/KLA-Tencor deal.
Despite all the talk surrounding these expansive mergers, data from PitchBook, an M&A, private equity and venture capital database, tracked some of the trends in terms of enterprise tech/IT/software deals. Comparing the number of deals from 2010 to 2012 and then from 2013 to 2015, Erez Ofer at TechCrunch writes about the decline, steadiness and rise of certain enterprise mergers.
In the growth category, Microsoft and Cisco are leading the pack. Up from eight acquisitions from 2010 to 2012, Microsoft has experienced 18 deals from 2013 to 2015. Meanwhile, Cisco shows rapid growth through five deals in the past two months alone, with three deals announced over the period of a few days.
EMC seems to have remained steady, yet the new Dell-EMC merger may drastically affect this growth. Lastly, IBM, Oracle, Dell, Citrix and Salesforce all have had less enterprise acquisition activity from 2013 to 2015.
"With the exception of a few that can be aggressive and increase their activity, the rest are slowing down," Ofer explains. "Although cash balances are pretty healthy, there are many reasons for slowing down. Some companies are busy with sorting out internal activities. In many cases, expected M&A valuations have shot up considerably, there has been activist involvement in some of the mature companies."
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