Dear Clients & Friends,
Below is a link to our July 2012 Market Update. As you will see, it provides our sense of M&A values, activity and trends for the dozen plus technology, information and healthcare sectors that we follow.
Click here for our Market Update
Some notable recent deals include:
- Dell agreed to acquire Quest Software for $2.4Bn;
- Hong Kong Exchanges & Clearing agreed to acquire London Metal Exchange for £1.4Bn ($2.2Bn);
- Vista Equity acquired Misys for £1.3Bn ($2.0Bn) which it then merged with its Turaz business (the renamed Reuters Kondor, which it had acquired only a few months earlier);
- Apax Partners Worldwide and JMI Equity agreed to acquire Paradigm for $1Bn;
- Salesforce agreed to acquire Buddy Media for $689M;
- Lightyear Capital agreed to acquire FIS’ Healthcare Benefit Solutions Business for $335M;
- FXCM agreed to acquire a 50% Controlling Stake in Lucid Markets for $176M;
- TA Associates agreed to acquire a Majority Stake in Omega Health for Rs 5.3Bn ($93M);
- Centaur Media agreed to acquire Econsultancy for £50M ($77.5M); and
- Ebix (NasdaqGS:EBIX) agreed to acquire two insurance software providers for $45.1M.
As we look forward we are concerned with the implications of the European economy, which seems to be slowing – the US economy, which seems fairly flat in the sectors we serve, but encouraged by the fact that there is significant cash in the system, chasing the stronger companies that are available. We are encouraged by recent m&a transactions and trends in both the financial technology and the healthcare technology sectors: In the healthcare IT sector in particular, the implications of the Supreme Court’s recent decision to uphold the Affordable Care Act are positive for those firms that provide technologies and services to facilitate clinical and administrative functionality. With bundled payment models and readmission penalties squeezing profits, hospitals and other providers will need to redouble efforts to actively engage with patients and promote self-monitoring, in some cases partnering with payers. We see some larger providers and payers diversifying into higher margin healthcare IT sectors. And we see many technology players entering the sector.
Meanwhile the financial technology sector continues to see high prices for firms with scale, top line growth, defensible leadership positions and proprietary products. See for example Hong Kong Exchanges & Clearing’s £1.4Bn ($2.2Bn) deal to acquire London Metal Exchange at 68.1x EBITDA.
Finally, we are pleased to note that, a few weeks ago, the M&A Advisor and the Association for Corporate Growth recognized Marlin & Associates for leading the Financial Services Deal-of-the-Year. (We advised NYSE on the acquisition of Metabit (Japan)). The award was presented at the 2012 ACG New York Champion’s Awards, which took place at an Awards Gala held at Sotheby’s New York. A panel of 11 independent M&A industry judges selected winners from 220 finalists across all award categories. We are always pleased to be recognized by our peers.