November 14, 2024 • 21 mins
In this episode of the Tech M&A Podcast, the Corum Group presents the November Tech M&A Report, highlighting key trends, market insights, and emotional aspects of the M&A process. The discussion includes the current state of tech acquisitions, notable deals, and the impact of recent elections on buyer sentiment. The episode emphasizes the importance of understanding the emotional journey of selling a company and offers practical advice for navigating this complex process.
Takeaways
- Selling a company involves an emotional journey.
- Expect highs and lows during the selling process.
- Preparation for due diligence is crucial.
- Emotions can impact the success of a deal.
- The current market presents unique opportunities for sellers.
- Understanding buyer sentiment is key to successful negotiations.
- Leaning on advisors can help manage emotional stress.
- The tech ecosystem in Asia is rapidly growing.
- Recent elections have influenced buyer attitudes positively.
- The importance of timing in the M&A process cannot be overstated.
Chapters
00:00 Introduction to Tech M&A Podcast
01:19 CEO's Desk: Insights from the Corum Group
05:07 Tech M&A Market Research Overview
16:40 Mastering Emotions in the M&A Process
19:34 Impact of Elections on Tech M&A
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome to the Tech &A Podcast.
Presented by the Corum Group.
Welcome to the Tech &A podcast.
Here we feature special reports on 29 tech sectors, current valuations, key trends andinterviews, highlighting the strategies, challenges and candid stories of tech
(00:25):
entrepreneurs who have successfully sold their companies.
Today we present the monthly Tech &A report from the research team here at Corum.
This is an audio presentation of our monthly webcast hosted the second Thursday of everymonth.
To register for our next webcast,
Visit Corumgroup.com forward slash events.
And now, the November Tech &A Report.
(00:52):
Good morning, afternoon, or evening, depending on where you are.
Welcome to Corum Tech &A Monthly Webcast for November 2024.
I'm Heidi Owen, Executive Vice President of Marketing at the Corum Group and your host fortoday.
Here's our agenda for today.
We'll begin with the CEO's desk.
Afterwards, we'll go to the Tech &A Market Research Report, then over to our first specialreport, Mastering Your Emotions in the &A Process.
(01:19):
and finally finish it off with a special election report from Bruce Milne.
Now, let's get started with the CEO's desk.
I'll hand it over to Bruce Milne, CEO of the Corum Group.
Greetings from Kuala Lumpur.
I'm here with my Corum colleagues and the World Financial Symposiums, hosting the firsttech &A masterclass in Asia.
We're excited to host an incredibly diverse group of attendees all across the APAC region,whose expertise covers every aspect of the software and IT world.
(01:47):
Malaysia's vibrant tech ecosystem is growing, buoyed by government commitment to fosteringinnovation.
We're honored to have the Malaysian government's support through MDex sponsorship of themasterclass this week.
We can't thank them enough.
This year, the Malaysian government announced several major initiatives to advance thegoal of building one of the top 20 global startup hubs by 2030.
(02:08):
And Malaysia is not alone.
All across Asia, governments are actively supporting domestic companies and the broadertech ecosystem, notably Singapore,
Vietnam and Thailand through startup programs, tax incentives, talent development, and byattracting foreign investment.
Additionally, a tech savvy population and skilled workforce have been key drivers ofgrowth across the region.
(02:31):
The maturing tech industry in Asia is also fueling robust &A activity as we tracked 404transactions through Q3 this year.
Corum is at the forefront of the Asia tech scene.
Indeed, we host over 75 educational events a year in Asia.
including online boot camps and in-person seminars.
Our regional resources, newsletters, magazines, and tech &A reports further support thisvibrant and growing ecosystem.
(02:58):
Our Asian team now is expanded to seven dedicated deal makers and other score of regionalsupport staff, all supported by the strength of the Global Corum Network.
These investments represent our commitment to the region, helping our clients achieve anoptimal outcome.
In over 20 years, we have become not only a leading educator,
but also leading seller of software and IT companies in Asia.
(03:20):
Going forward, we see many more companies on the cutting edge of technology, particularlywith AI, that will be attracted to Western buyers.
If you're a buyer looking to make an acquisition in Asia, call us.
We're seeing extraordinary opportunities.
Now, onto our deal report.
Thanks, Heidi.
I'm happy to add another deal announcement to the list.
(03:40):
Corum client XISS has been acquired by N Square Group.
XISS, a global expert in managed services for the high-performance computing andartificial intelligence computing areas, joins N Squared Group's list of growing companies
that help clients be more productive, innovative, and risk-aware in these areas, as wellas scientific computing.
(04:01):
XISS is the fifth company to join N Squared's radical new approach to transform computingand technology investment.
Congratulations and continued success to both teams.
I'm happy to add another deal announcement to the list.
Corum client Network Capacity Solutions has been acquired by ConnectBase.
This acquisition marks a pivotal step in ConnectBase's mission to build location truth anddigitally transform how connectivity and digital infrastructure get bought and sold.
(04:29):
ConnectBase, the global ecosystem for buying and selling connectivity coupled with NetworkCapacity Solutions inventory lifecycle management platform.
provides the market with the most comprehensive end-to-end solution for data centers andservice providers.
As ConnectBase continues to scale, the acquisition of network capacity solutions positionsthe company to further innovate in the connectivity space.
(04:53):
This move will deliver enhanced value to its growing ecosystem of partners and providers,driving the evolution of the global connectivity marketplace.
Congratulations and continued success to both teams.
Congratulations again to everyone involved.
Now let's get to the Tech &A Market Research Report by Corum's globally renowned researchteam, where we will look at how Tech &A is doing across all sectors.
(05:16):
We begin with the public markets, where in the US the S &P tech index rose by 2.1 % inOctober while the Nasdaq and Dow Jones indices both dropped.
The US economy continued to grow at a robust pace in the third quarter, though weakness inEurope and Asia has investors concerned.
In Europe,
The CAC 40, DAX, and FTSE 100 all declined in October as the continent's economies arecontending with slowing growth.
(05:40):
Pivoting to Asia, the Nikkei climbed by 3.1 % in October, while the Hang Seng and SSEComposite dropped.
Investors digested the results of Japan's election and recent stimulus measures out ofChina.
Our Corum Index shows 450 transactions in October, including six megadeals, the largestworth $10.6 billion.
(06:00):
There were 39 private equity platform deals and 82 VC-backed exits.
Non-tech buyers pocketed 32 tech companies, highlighting the diverse nature of the globalbuyer universe.
Dealmaking remains highly international with 40 % of transactions being cross-border.
October witnessed six mega deals distributed among the horizontal, internet, and verticalsectors.
(06:22):
The vertical sector continued to lead in terms of both deal volume and value.
In the internet sector, revenue and EBIT evaluations in October were broadly in line withlevels seen in recent months.
The travel and leisure subsector had the highest sales multiples at 4.1 times, and thee-commerce subsector had the highest EBIT evaluations at 14.5 times.
(06:43):
Starting with a mega deal in the sector, Turkish online shopping platform Hepsi Berado wasacquired for about $1.2 billion by Kazakh fintech and e-commerce giant Cas BKZ.
to expand its regional reach and create new opportunities for SMEs in Turkey andKazakhstan.
Among other deals in the internet sector, memorial and obituary platform Butterfly waspurchased by Better Place Forest, the creator of America's first memorial forest to bridge
(07:10):
the natural and digital world.
And in the UK, digital will writing company, Fairwill, was acquired for nearly $17 millionby funeral service provider Dignity, boosting its end of life services offering.
Finally, we saw deals among web-based pet care providers as AI-powered pet health startupDig Labs was scooped up by fresh dog food company, OLLI, introducing a new service called
(07:32):
Health Screening for Pet Owners.
Elsewhere in the space, online pet and animal pharmacy, Allivet, was wrapped up by rurallifestyle retailer Tractor Supply, complementing its offerings for companion animals,
equestrian and livestock.
And in Australia, pet telehealth services provider Speak to a Vet was bought by onlineveterinary consulting firm, Dialivet,
(07:52):
to reach more pet owners by providing easier access to licensed veterinary care.
In the horizontal sector EBITDA multiples have steadily climbed higher since June reachinga 12-month high of 20.6 times in October.
The supply chain management subsector had the highest sales and EBITDA valuations at 12times and 41.2 times respectively.
(08:13):
There were two mega deals in the payments subsector as crypto startup Bridge was boughtfor a reported $1.1 billion by payment giant Stripe.
moving into the stablecoin sector, and billing software firm Zora was jointly acquired for$1.7 billion at 2.7 times revenue by PE firm Silver Lake and Singaporean wealth fund GIC.
(08:35):
In the UK, foreign exchange and payment service provider GC Partners was picked up bySwiss asset advisory firm Montreux Capital Management to enter the $5 trillion daily
trading volume of the foreign exchange market.
and payment processor Blockchip was snapped up by its peer company Stax to expand itsend-to-end capabilities.
Another mega deal took place in the HR sector, where workforce software was wrapped up fora reported $1.2 billion by ADP, growing its HCM offerings.
(09:06):
Among other deals in the sphere, German workforce planning and skills management softwaremaker HRForecast was bought by labor market analytics specialist Talent Neuron.
planning to create an end-to-end strategic workforce planning platform.
Also, British cloud-native workforce management startup Surfboard was picked up bycustomer intelligence platform Dialpad to boost its position in the contact center market.
(09:31):
In customer analytics, Paris-based video research platform Tactics was purchased by onlinesurvey and research services firm QuestionPro, adding to its experience research offerings
and entering the French market.
Finally,
The Bengaluru-based AI-powered customer insights platform, Ask Echo, was bought bye-commerce acceleration company Spretail, enhancing its AI capabilities.
(09:56):
In the infrastructure sector, revenue valuations have steadily climbed higher since May,reaching 4.6 times in October.
The security subsector had the highest sales multiples at 6.5 times, and the storage andhosting subsector had the highest EBIT evaluations at 33.9 times.
In the AI-powered security space, intelligence data protection platform TRAIL was acquiredfor $162 million by cyber unicorn Sierra, leveraging AI for advanced data security.
(10:24):
And AI-based risk decisioning platform EFFECTIVE was wrapped up for $136 million bypredictive analytics firm SOCURE, creating a unified identity and fraud decision engine.
Among development tool providers, GPU cloud infrastructure and AI model deploymentspecialist TurboScale,
was bought for $150 million by human capital management platform provider Shift Pixie tostreamline workforce management with enhanced AI-powered features.
(10:50):
And UK-based bot building company, The Bot Platform, was pocketed by FLIP, a German appfor frontline employees to strengthen its AI-powered tools that enhance employee
engagement.
Elsewhere in the infrastructure sector, AI-powered video creation and editing platform,VIDS,
was picked up by digital video advertising firm Show Heroes Group, enabling it togenerate, edit, and optimize video content with AI-driven precision.
(11:14):
And generative video AI specialist LA was acquired by its fellow company, Panopto, addingtext-to-video and avatar creation features to its portfolio.
In the vertical sector, sales multiples have roared higher since February, reaching a12-month high of 5.6 times in October.
The AEC subsector had the highest revenue and EBIT devaluations at 12 times and 45.4 timesrespectively.
(11:39):
The AEC subsector has also witnessed the largest October tech deal as computationalintelligence specialist Altair was wrapped up for $10.6 billion by Siemens to create the
most complete AI power design and simulation suite.
Corum acted as an advisor on two transactions with Altair.
representing DEM Solutions out of the UK in 2019 and S-Frame out of Canada in 2021, bothof which added simulation specialists to Altair's portfolio.
(12:08):
There was a mega deal in the health tech subsector where global payments sold this medicalbusiness Advanced MD to PE firm Francisco Partners for $1.1 billion.
Among other deals in this space, health system performance optimization specialist
Occumen was acquired by healthcare information technology company HC1 to expand itsdata-driven lab insights.
(12:31):
And motion capture AI company RehabBoost was purchased by healthcare technology solutionsprovider Medbridge to boost its AI-enabled body movement analysis offerings for
rehabilitation patients.
In real estate, property furnishing platform Virtual Staging AI was wrapped up by realestate search engine giant Zillow Group.
to create a more immersive listing experience for its clients.
(12:54):
And Curated Social, a media content platform for real estate agents was acquired for $2.5million by agent review technology company Rate My Agent, bolstering its market position
and expanding offerings.
In the manufacturing field, production scheduling specialist Phoenix Software was scoopedup by manufacturing and supply chain software vendor QAD to broaden its advanced
(13:17):
scheduling capabilities for adaptive enterprises.
Elsewhere in the space, Italian manufacturing software company said APTA was bought fornearly $68 million by Finnish telco and digital services firm Elisa, accelerating the
growth of its industrial software business.
In the consumer sector, EBIT evaluations have skyrocketed since April, reaching a 12-monthhigh of 17.7 times in October.
(13:41):
The casual gaming and core gaming subsectors had sales multiples of 2.2 times and 4 timesrespectively.
In the gaming space, extended reality firm Zapar was acquired for $45 million by metaverseplatform Infinite Reality, marking its sixth acquisition in 2024.
In Sweden, mobile gaming studio Racket Spell was purchased for $7.5 million by investmentcompany Wrightbridge, adding to its gaming portfolio and increasing its presence in the
(14:08):
fast-growing gaming industry.
And in Saudi Arabia, game studio UMX was bought for $4.5 million by Jetapult.
an India-based investment company in the gaming landscape as MENA gaming booms.
Among companies providing financial solutions for consumers, Asian communicationstechnology group Singtel sold its mobile wallet Dash to Western Union aiming to broaden
(14:30):
its financial services ecosystem.
Lastly, Gibraltar-based crypto company Damax sold its retail arm to crypto banking appZGlu out of the UK to accelerate European expansion.
In the IT services developed market sector,
Revenue and EBITDA valuations in October were in line with levels seen earlier in theyear.
In the IT services emerging market sector, sales multiples have trended upwards since May,reaching 2.9 times in October.
(14:57):
The trend for game development services continued into October, as Keyword Studios wrappedup another co-developer, Certain Affinity, that has worked on games such as Halo, Hogwarts
Legacy, and Call of Duty, adding scale and action genre expertise to Keyword's Createdivision.
Among other deals, software and data engineering firm Gemba Advantage was purchased bytech transformation and cybersecurity services provider Actica Consulting, boosting its
(15:24):
capabilities in designing, building, and maintaining mission-critical systems forgovernment clients.
And in Argentina, software development services provider Mobile Computing was bought byits American peer firm Grid Dynamics to expand its footprint in South America.
Among system integrators, Corum client XISS
high-performance computing and AI specialist was acquired by N Square Group growing itsportfolio.
(15:50):
And in UAE, AI ideology and AI tech services startup was bought by MDSSI, a subsidiary ofInternational Technology Distribution and Services Group, Mides, expanding its AI
capabilities across the Middle East.
In the security services field, Dell sold its SecureWorks subsidiary for $859 million toSophos.
(16:12):
broadening its security portfolio with the seller's flagship cloud-based platform, Tejas,which helps to detect advanced threats.
And Condatis, a UK-based digital ID and access management consulting firm, was snapped upby PE firm Bridgepoint.
And that's our report.
A special thanks to our amazing international research team.
(16:33):
Please do get in touch if you'd like a copy of the full research report, and we'll make itavailable to you.
Now, on to our special report.
Mastering the emotions of the &A process.
Selling a company isn't just a business transaction.
It's an emotional journey that some sellers don't expect.
Today, we're diving into the roller coaster of emotions CEOs and founders experienceduring the &A process.
(16:57):
Buckle up.
The selling process is filled with highs and lows.
It all starts with apprehension and doubt.
Is it the right time to sell?
What about my employees?
Am I ready to give up control?
Once the decision is made and offers start rolling in, there's a surge of excitement.
The future looks bright.
(17:19):
But then comes the letter of intent.
Suddenly, the buyer's in control and due diligence begins.
Fear strikes and sellers often worry.
Do I have all the information they need?
Are my financials in order?
As due diligence drags on, discouragement, frustration, and even anger build.
(17:39):
Repeated questions and scrutiny of every detail can feel like an invasion.
As due diligence wraps up and discussions around the purchase agreement progress well,there's light at the end of the tunnel.
The integration plans form and the finish line is in sight.
Hope and optimism return.
With a closing date set, there's a collective sigh of relief.
(17:59):
The end is near.
Finally, the deal closes.
The money's in the bank and it's time to celebrate.
Understanding these emotional swings is vital because emotions can get in the way ofachieving an optimal deal.
They can even kill it.
Now, how can sellers navigate this emotional journey?
(18:20):
1.
Draw on past experience if you have it.
2.
Expect some frustration.
It's normal.
3.
Lean on your advisors.
They've been through this before.
4.
Prepare thoroughly for due diligence to reduce stress.
Five, stick to the facts during negotiations.
(18:42):
Six, if emotions overwhelm you, don't be afraid to pause the process.
Remember, selling your company is more than a transaction.
It's a major life event.
Understanding and preparing for these emotional swings can ensure a smoother, moresuccessful sales process.
An experienced &A advisor can provide stability and guidance through the emotional &Ajourney, keeping you on target.
(19:06):
and focused on your goals.
Now let's go to our special election report.
Trump Ignites Tech &A.
Hi, it's Bruce Milne.
I'm in Asia preparing for the Tech &A masterclass.
I was over here during the election.
What was interesting is that every major international channel had the election as anumber one news.
(19:27):
They're actually following it live.
Frankly, the best unbiased coverage was Al Jazeera.
The impact of the election is profound.
The positive momentum in the stock market was reflected immediately in the buyer'sattitudes.
The phone was ringing off the hook.
I believe that we will see more offers, more companies go into LOI in the next month thanany time in history.
(19:49):
There's never been a better time for you to consider selling your company.
Let's take advantage of this.
special note to my friends in Asia.
We've been running conferences here for over 20 years and everybody's interested intiming.
Probably not a better time for you.
Not only is there more cash in the system and more buyers, but the buyers are hungry aswe're seeing even for US and European companies.
(20:12):
But there's also a huge disparity in currencies between the dollar and regional currenciesand also wage disparity.
Western buyers are going to be aggressively going after Asian companies no matter howsmall they are.
Don't miss this window of opportunity.
If you'd like a copy of this month's full Tech &A Research Report, email us at info atcoramgroup.com.
(20:37):
Thank you for tuning in to the Tech &A Podcast.
If you enjoyed the show, please share it with your friends, colleagues and fellowentrepreneurs.
We release new episodes every two weeks and present the research report on the secondThursday of each month.
So make sure to subscribe and stay up to date on our latest interviews and Tech &AResearch.
And while you're there, go ahead and drop us a rate and review.
(21:00):
And if you have any suggestions or topics you'd like us to cover, please reach out to uson social media or email us at info at Corum group.com.
Join us again next time for more inspirational stories and practical tips from techfounders who have successfully navigated the exits of their companies.
Welcome to the Tech &A Podcast.
Presented by the Corum Group.
Welcome to the Tech &A podcast.
Here we feature special reports on 29 tech sectors, current valuations, key trends andinterviews, highlighting the strategies, challenges and candid stories of tech
(00:25):
entrepreneurs who have successfully sold their companies.
Today we present the monthly Tech &A report from the research team here at Corum.
This is an audio presentation of our monthly webcast hosted the second Thursday of everymonth.
To register for our next webcast,
Visit Corumgroup.com forward slash events.
And now, the November Tech &A Report.
(00:52):
Good morning, afternoon, or evening, depending on where you are.
Welcome to Corum Tech &A Monthly Webcast for November 2024.
I'm Heidi Owen, Executive Vice President of Marketing at the Corum Group and your host fortoday.
Here's our agenda for today.
We'll begin with the CEO's desk.
Afterwards, we'll go to the Tech &A Market Research Report, then over to our first specialreport, Mastering Your Emotions in the &A Process.
(01:19):
and finally finish it off with a special election report from Bruce Milne.
Now, let's get started with the CEO's desk.
I'll hand it over to Bruce Milne, CEO of the Corum Group.
Greetings from Kuala Lumpur.
I'm here with my Corum colleagues and the World Financial Symposiums, hosting the firsttech &A masterclass in Asia.
We're excited to host an incredibly diverse group of attendees all across the APAC region,whose expertise covers every aspect of the software and IT world.
(01:47):
Malaysia's vibrant tech ecosystem is growing, buoyed by government commitment to fosteringinnovation.
We're honored to have the Malaysian government's support through MDex sponsorship of themasterclass this week.
We can't thank them enough.
This year, the Malaysian government announced several major initiatives to advance thegoal of building one of the top 20 global startup hubs by 2030.
(02:08):
And Malaysia is not alone.
All across Asia, governments are actively supporting domestic companies and the broadertech ecosystem, notably Singapore,
Vietnam and Thailand through startup programs, tax incentives, talent development, and byattracting foreign investment.
Additionally, a tech savvy population and skilled workforce have been key drivers ofgrowth across the region.
(02:31):
The maturing tech industry in Asia is also fueling robust &A activity as we tracked 404transactions through Q3 this year.
Corum is at the forefront of the Asia tech scene.
Indeed, we host over 75 educational events a year in Asia.
including online boot camps and in-person seminars.
Our regional resources, newsletters, magazines, and tech &A reports further support thisvibrant and growing ecosystem.
(02:58):
Our Asian team now is expanded to seven dedicated deal makers and other score of regionalsupport staff, all supported by the strength of the Global Corum Network.
These investments represent our commitment to the region, helping our clients achieve anoptimal outcome.
In over 20 years, we have become not only a leading educator,
but also leading seller of software and IT companies in Asia.
(03:20):
Going forward, we see many more companies on the cutting edge of technology, particularlywith AI, that will be attracted to Western buyers.
If you're a buyer looking to make an acquisition in Asia, call us.
We're seeing extraordinary opportunities.
Now, onto our deal report.
Thanks, Heidi.
I'm happy to add another deal announcement to the list.
(03:40):
Corum client XISS has been acquired by N Square Group.
XISS, a global expert in managed services for the high-performance computing andartificial intelligence computing areas, joins N Squared Group's list of growing companies
that help clients be more productive, innovative, and risk-aware in these areas, as wellas scientific computing.
(04:01):
XISS is the fifth company to join N Squared's radical new approach to transform computingand technology investment.
Congratulations and continued success to both teams.
I'm happy to add another deal announcement to the list.
Corum client Network Capacity Solutions has been acquired by ConnectBase.
This acquisition marks a pivotal step in ConnectBase's mission to build location truth anddigitally transform how connectivity and digital infrastructure get bought and sold.
(04:29):
ConnectBase, the global ecosystem for buying and selling connectivity coupled with NetworkCapacity Solutions inventory lifecycle management platform.
provides the market with the most comprehensive end-to-end solution for data centers andservice providers.
As ConnectBase continues to scale, the acquisition of network capacity solutions positionsthe company to further innovate in the connectivity space.
(04:53):
This move will deliver enhanced value to its growing ecosystem of partners and providers,driving the evolution of the global connectivity marketplace.
Congratulations and continued success to both teams.
Congratulations again to everyone involved.
Now let's get to the Tech &A Market Research Report by Corum's globally renowned researchteam, where we will look at how Tech &A is doing across all sectors.
(05:16):
We begin with the public markets, where in the US the S &P tech index rose by 2.1 % inOctober while the Nasdaq and Dow Jones indices both dropped.
The US economy continued to grow at a robust pace in the third quarter, though weakness inEurope and Asia has investors concerned.
In Europe,
The CAC 40, DAX, and FTSE 100 all declined in October as the continent's economies arecontending with slowing growth.
(05:40):
Pivoting to Asia, the Nikkei climbed by 3.1 % in October, while the Hang Seng and SSEComposite dropped.
Investors digested the results of Japan's election and recent stimulus measures out ofChina.
Our Corum Index shows 450 transactions in October, including six megadeals, the largestworth $10.6 billion.
(06:00):
There were 39 private equity platform deals and 82 VC-backed exits.
Non-tech buyers pocketed 32 tech companies, highlighting the diverse nature of the globalbuyer universe.
Dealmaking remains highly international with 40 % of transactions being cross-border.
October witnessed six mega deals distributed among the horizontal, internet, and verticalsectors.
(06:22):
The vertical sector continued to lead in terms of both deal volume and value.
In the internet sector, revenue and EBIT evaluations in October were broadly in line withlevels seen in recent months.
The travel and leisure subsector had the highest sales multiples at 4.1 times, and thee-commerce subsector had the highest EBIT evaluations at 14.5 times.
(06:43):
Starting with a mega deal in the sector, Turkish online shopping platform Hepsi Berado wasacquired for about $1.2 billion by Kazakh fintech and e-commerce giant Cas BKZ.
to expand its regional reach and create new opportunities for SMEs in Turkey andKazakhstan.
Among other deals in the internet sector, memorial and obituary platform Butterfly waspurchased by Better Place Forest, the creator of America's first memorial forest to bridge
(07:10):
the natural and digital world.
And in the UK, digital will writing company, Fairwill, was acquired for nearly $17 millionby funeral service provider Dignity, boosting its end of life services offering.
Finally, we saw deals among web-based pet care providers as AI-powered pet health startupDig Labs was scooped up by fresh dog food company, OLLI, introducing a new service called
(07:32):
Health Screening for Pet Owners.
Elsewhere in the space, online pet and animal pharmacy, Allivet, was wrapped up by rurallifestyle retailer Tractor Supply, complementing its offerings for companion animals,
equestrian and livestock.
And in Australia, pet telehealth services provider Speak to a Vet was bought by onlineveterinary consulting firm, Dialivet,
(07:52):
to reach more pet owners by providing easier access to licensed veterinary care.
In the horizontal sector EBITDA multiples have steadily climbed higher since June reachinga 12-month high of 20.6 times in October.
The supply chain management subsector had the highest sales and EBITDA valuations at 12times and 41.2 times respectively.
(08:13):
There were two mega deals in the payments subsector as crypto startup Bridge was boughtfor a reported $1.1 billion by payment giant Stripe.
moving into the stablecoin sector, and billing software firm Zora was jointly acquired for$1.7 billion at 2.7 times revenue by PE firm Silver Lake and Singaporean wealth fund GIC.
(08:35):
In the UK, foreign exchange and payment service provider GC Partners was picked up bySwiss asset advisory firm Montreux Capital Management to enter the $5 trillion daily
trading volume of the foreign exchange market.
and payment processor Blockchip was snapped up by its peer company Stax to expand itsend-to-end capabilities.
Another mega deal took place in the HR sector, where workforce software was wrapped up fora reported $1.2 billion by ADP, growing its HCM offerings.
(09:06):
Among other deals in the sphere, German workforce planning and skills management softwaremaker HRForecast was bought by labor market analytics specialist Talent Neuron.
planning to create an end-to-end strategic workforce planning platform.
Also, British cloud-native workforce management startup Surfboard was picked up bycustomer intelligence platform Dialpad to boost its position in the contact center market.
(09:31):
In customer analytics, Paris-based video research platform Tactics was purchased by onlinesurvey and research services firm QuestionPro, adding to its experience research offerings
and entering the French market.
Finally,
The Bengaluru-based AI-powered customer insights platform, Ask Echo, was bought bye-commerce acceleration company Spretail, enhancing its AI capabilities.
(09:56):
In the infrastructure sector, revenue valuations have steadily climbed higher since May,reaching 4.6 times in October.
The security subsector had the highest sales multiples at 6.5 times, and the storage andhosting subsector had the highest EBIT evaluations at 33.9 times.
In the AI-powered security space, intelligence data protection platform TRAIL was acquiredfor $162 million by cyber unicorn Sierra, leveraging AI for advanced data security.
(10:24):
And AI-based risk decisioning platform EFFECTIVE was wrapped up for $136 million bypredictive analytics firm SOCURE, creating a unified identity and fraud decision engine.
Among development tool providers, GPU cloud infrastructure and AI model deploymentspecialist TurboScale,
was bought for $150 million by human capital management platform provider Shift Pixie tostreamline workforce management with enhanced AI-powered features.
(10:50):
And UK-based bot building company, The Bot Platform, was pocketed by FLIP, a German appfor frontline employees to strengthen its AI-powered tools that enhance employee
engagement.
Elsewhere in the infrastructure sector, AI-powered video creation and editing platform,VIDS,
was picked up by digital video advertising firm Show Heroes Group, enabling it togenerate, edit, and optimize video content with AI-driven precision.
(11:14):
And generative video AI specialist LA was acquired by its fellow company, Panopto, addingtext-to-video and avatar creation features to its portfolio.
In the vertical sector, sales multiples have roared higher since February, reaching a12-month high of 5.6 times in October.
The AEC subsector had the highest revenue and EBIT devaluations at 12 times and 45.4 timesrespectively.
(11:39):
The AEC subsector has also witnessed the largest October tech deal as computationalintelligence specialist Altair was wrapped up for $10.6 billion by Siemens to create the
most complete AI power design and simulation suite.
Corum acted as an advisor on two transactions with Altair.
representing DEM Solutions out of the UK in 2019 and S-Frame out of Canada in 2021, bothof which added simulation specialists to Altair's portfolio.
(12:08):
There was a mega deal in the health tech subsector where global payments sold this medicalbusiness Advanced MD to PE firm Francisco Partners for $1.1 billion.
Among other deals in this space, health system performance optimization specialist
Occumen was acquired by healthcare information technology company HC1 to expand itsdata-driven lab insights.
(12:31):
And motion capture AI company RehabBoost was purchased by healthcare technology solutionsprovider Medbridge to boost its AI-enabled body movement analysis offerings for
rehabilitation patients.
In real estate, property furnishing platform Virtual Staging AI was wrapped up by realestate search engine giant Zillow Group.
to create a more immersive listing experience for its clients.
(12:54):
And Curated Social, a media content platform for real estate agents was acquired for $2.5million by agent review technology company Rate My Agent, bolstering its market position
and expanding offerings.
In the manufacturing field, production scheduling specialist Phoenix Software was scoopedup by manufacturing and supply chain software vendor QAD to broaden its advanced
(13:17):
scheduling capabilities for adaptive enterprises.
Elsewhere in the space, Italian manufacturing software company said APTA was bought fornearly $68 million by Finnish telco and digital services firm Elisa, accelerating the
growth of its industrial software business.
In the consumer sector, EBIT evaluations have skyrocketed since April, reaching a 12-monthhigh of 17.7 times in October.
(13:41):
The casual gaming and core gaming subsectors had sales multiples of 2.2 times and 4 timesrespectively.
In the gaming space, extended reality firm Zapar was acquired for $45 million by metaverseplatform Infinite Reality, marking its sixth acquisition in 2024.
In Sweden, mobile gaming studio Racket Spell was purchased for $7.5 million by investmentcompany Wrightbridge, adding to its gaming portfolio and increasing its presence in the
(14:08):
fast-growing gaming industry.
And in Saudi Arabia, game studio UMX was bought for $4.5 million by Jetapult.
an India-based investment company in the gaming landscape as MENA gaming booms.
Among companies providing financial solutions for consumers, Asian communicationstechnology group Singtel sold its mobile wallet Dash to Western Union aiming to broaden
(14:30):
its financial services ecosystem.
Lastly, Gibraltar-based crypto company Damax sold its retail arm to crypto banking appZGlu out of the UK to accelerate European expansion.
In the IT services developed market sector,
Revenue and EBITDA valuations in October were in line with levels seen earlier in theyear.
In the IT services emerging market sector, sales multiples have trended upwards since May,reaching 2.9 times in October.
(14:57):
The trend for game development services continued into October, as Keyword Studios wrappedup another co-developer, Certain Affinity, that has worked on games such as Halo, Hogwarts
Legacy, and Call of Duty, adding scale and action genre expertise to Keyword's Createdivision.
Among other deals, software and data engineering firm Gemba Advantage was purchased bytech transformation and cybersecurity services provider Actica Consulting, boosting its
(15:24):
capabilities in designing, building, and maintaining mission-critical systems forgovernment clients.
And in Argentina, software development services provider Mobile Computing was bought byits American peer firm Grid Dynamics to expand its footprint in South America.
Among system integrators, Corum client XISS
high-performance computing and AI specialist was acquired by N Square Group growing itsportfolio.
(15:50):
And in UAE, AI ideology and AI tech services startup was bought by MDSSI, a subsidiary ofInternational Technology Distribution and Services Group, Mides, expanding its AI
capabilities across the Middle East.
In the security services field, Dell sold its SecureWorks subsidiary for $859 million toSophos.
(16:12):
broadening its security portfolio with the seller's flagship cloud-based platform, Tejas,which helps to detect advanced threats.
And Condatis, a UK-based digital ID and access management consulting firm, was snapped upby PE firm Bridgepoint.
And that's our report.
A special thanks to our amazing international research team.
(16:33):
Please do get in touch if you'd like a copy of the full research report, and we'll make itavailable to you.
Now, on to our special report.
Mastering the emotions of the &A process.
Selling a company isn't just a business transaction.
It's an emotional journey that some sellers don't expect.
Today, we're diving into the roller coaster of emotions CEOs and founders experienceduring the &A process.
(16:57):
Buckle up.
The selling process is filled with highs and lows.
It all starts with apprehension and doubt.
Is it the right time to sell?
What about my employees?
Am I ready to give up control?
Once the decision is made and offers start rolling in, there's a surge of excitement.
The future looks bright.
(17:19):
But then comes the letter of intent.
Suddenly, the buyer's in control and due diligence begins.
Fear strikes and sellers often worry.
Do I have all the information they need?
Are my financials in order?
As due diligence drags on, discouragement, frustration, and even anger build.
(17:39):
Repeated questions and scrutiny of every detail can feel like an invasion.
As due diligence wraps up and discussions around the purchase agreement progress well,there's light at the end of the tunnel.
The integration plans form and the finish line is in sight.
Hope and optimism return.
With a closing date set, there's a collective sigh of relief.
(17:59):
The end is near.
Finally, the deal closes.
The money's in the bank and it's time to celebrate.
Understanding these emotional swings is vital because emotions can get in the way ofachieving an optimal deal.
They can even kill it.
Now, how can sellers navigate this emotional journey?
(18:20):
1.
Draw on past experience if you have it.
2.
Expect some frustration.
It's normal.
3.
Lean on your advisors.
They've been through this before.
4.
Prepare thoroughly for due diligence to reduce stress.
Five, stick to the facts during negotiations.
(18:42):
Six, if emotions overwhelm you, don't be afraid to pause the process.
Remember, selling your company is more than a transaction.
It's a major life event.
Understanding and preparing for these emotional swings can ensure a smoother, moresuccessful sales process.
An experienced &A advisor can provide stability and guidance through the emotional &Ajourney, keeping you on target.
(19:06):
and focused on your goals.
Now let's go to our special election report.
Trump Ignites Tech &A.
Hi, it's Bruce Milne.
I'm in Asia preparing for the Tech &A masterclass.
I was over here during the election.
What was interesting is that every major international channel had the election as anumber one news.
(19:27):
They're actually following it live.
Frankly, the best unbiased coverage was Al Jazeera.
The impact of the election is profound.
The positive momentum in the stock market was reflected immediately in the buyer'sattitudes.
The phone was ringing off the hook.
I believe that we will see more offers, more companies go into LOI in the next month thanany time in history.
(19:49):
There's never been a better time for you to consider selling your company.
Let's take advantage of this.
special note to my friends in Asia.
We've been running conferences here for over 20 years and everybody's interested intiming.
Probably not a better time for you.
Not only is there more cash in the system and more buyers, but the buyers are hungry aswe're seeing even for US and European companies.
(20:12):
But there's also a huge disparity in currencies between the dollar and regional currenciesand also wage disparity.
Western buyers are going to be aggressively going after Asian companies no matter howsmall they are.
Don't miss this window of opportunity.
If you'd like a copy of this month's full Tech &A Research Report, email us at info atcoramgroup.com.
(20:37):
Thank you for tuning in to the Tech &A Podcast.
If you enjoyed the show, please share it with your friends, colleagues and fellowentrepreneurs.
We release new episodes every two weeks and present the research report on the secondThursday of each month.
So make sure to subscribe and stay up to date on our latest interviews and Tech &AResearch.
And while you're there, go ahead and drop us a rate and review.
(21:00):
And if you have any suggestions or topics you'd like us to cover, please reach out to uson social media or email us at info at Corum group.com.
Join us again next time for more inspirational stories and practical tips from techfounders who have successfully navigated the exits of their companies.
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