The 2017 year is over, and as such, what better time than now to take a look at how things performed in 2017. The topic is mergers and acquisitions (M&A) in emerging technology.
Top Corporate Acquirers Since 2007
Before looking at the 2017 figures, which corporate acquirer would you guess comes out on top since 2007? Would you guess Intel, the typical stalwart in technology acquisitions? Perhaps Microsoft or Apple, two of the dinosaur behemoths in the industry? Take your guess, because the answer, according to private equity data provider Pitchbook, follows.
Interestingly, although not too surprising, the top M&A acquirer since 2007 is Google’s parent company Alphabet, with its most active technology vertical of artificial intelligence. Since 2007, Alphabet has made 46 deals amounting to an estimated $3.2 billion. The biggest acquisition deal of Alphabet over this period is the internet-of-things maker Nest Labs.
According to the number of deals, IBM comes in second at 28 deals and $850 million in spending. IBM was most active in the cybersecurity space, with its largest deal being Trusteer.
In third place is Cisco at 25 deals. Cisco was most active in the cybersecurity area, and its largest acquisition target was WebEx Communications. Interestingly, Cisco spent a lot more than IBM, doling out $3.2 billion for its acquisition targets.
In fourth place place is 3D Systems with 25 deals. 3D Systems’ most common technology vertical was 3D printing (surprise!), and spending $135.5 million. 3D System’s largest acquisition was Z Corporation.
In fifth place are a couple of firms with 24 deals a piece – Publicis Groupe and Accenture. Publicis spent $14.5 million euro on its acquisitions. Its largest active technology vertical was Adtech and its largest deal was Chemistry Communications. Accenture’s most active technology vertical was in cybersecurity and marketing technology, with its largest target being Procurian. Overall, Accenture spent $375 million in acquisition deals was 2007 through 2017.
Source: Pitchbook
Top Corporate Acquirers in 2017
With the recent history as the backdrop, which companies would you guess were most active in emerging technology acquisitions in 2017? Take your guess, because the results are shown below.
On top of the 2017 corporate acquirers in emerging technology turns out to be Accenture, having made 7 deals in 2017 alone. Accenture’s most active technology vertical this past year was marketing technology, and its most notable deal was SinnerSchrader.
In second place was Symantec with 5 deals. Symantec’s most active vertical was cybersecurity and its most notable deal was LifeLock.
Tied for second place was Alphabet at 5 deals. Alphabet’s most active vertical was artificial intelligence and its most notable 2017 deal was Senosis Health.
The remaining members on the top 2017 acquirers includes Snap Inc., Phillips, and fiserv. These three companies made a total of 12 acquisitions in 2017 in areas ranging from adtech to healthtech to fintech.
Source: Pitchbook
Conclusion
In an interesting review of Pitchbook’s findings on M&A in emerging technology, the most active 2017 corporate acquirer was Accenture. If one broadens the time frame since 2007, the most active acquirer turns out to be Alphabet. It’s an actively competitive world in emerging technology today.
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