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Disruption is here to stay. Get used to it.

Disruption leads to paradigm shifts

Mar 13, 2016

Disruption is here to stay. Get used to it.

Enterprise Data, Fintech, Healthcare IT, Market Update, Newsletter , , , 0 Comments

For several years now, the dozen plus information technology sectors that we support have been strong for some, while quite disruptive for others. In Fintech, the press has focused on the digital revolution in customer behavior and the wave of virtualization currently sweeping financial services. It has to make the traditional providers nervous. In Enterprise Data, the buzz has been around the rise of big data analytics and how they are changing the way we understand the world (See the recent IBM Watson deal below and more thoughts on that HERE). In Healthcare IT the talk has been about the increasing use of technology, information, and tools that may fundamentally change the doctor-patient relationship. Read the full newsletter HERE. These are disruptive times. Get used to it.

These are times in which the use of technology to remove humans from both structured and unstructured processes has never had more momentum. Driverless cars are the tip of the iceberg. There is a long list of innovative firms finding creative ways to give non-technical users a vastly improved experience at a materially lower cost.

It’s a heady time to be in this industry. We’re pretty sure that the politicians won’t mess it up; even though we are sure they will try. Some of the more interesting transactions over the past month include the following:

  • IBM Watson Health (Armonk, NY) agreed to acquire Truven Health Analytics for $2.6bn, valuing the company at an implied 5.9x LTM Revenue and 35.7x LTM EBITDA;
  • TSYS (NYSE:TSS) agreed to acquire TransFirst from Vista Equity Partners for $2.4bn in cash, valuing the company at an implied 13.8x adjusted EBITDA;
  • ResMed (San Diego, CA) agreed to acquire Brightree for $800mm, valuing the company at an implied 7.1x LTM Revenue and 18.6x LTM EBITDA;
  • Insight Venture Partners (New York, NY) agreed to acquire Diligent for $4.90 per share, valuing the company at approximately $624mm, including cash;
  • Oscar Insurance (New York, NY) raised $400mm in a funding round valuing the company at $2.7bn post money;
  • Telenor (OB:TEL) agreed to acquire Tapad for $360mm, valuing the company at an implied 4.0x 2016E revenue;
  • Snapdeal (New Delhi, India) raised $200mm led by Ontario Teachers’ Pension Plan, valuing the company at $6.5bn;
  • Nasdaq (NASDAQ:NDAQ) agreed to acquire Marketwired from OMERS Private Equity for CAD150mm (~$111mm).

Read our full March 2016 M&A Market Update HERE.

Ken Marlin

Ken Marlin

Ken Marlin is Managing Partner and Founder of Marlin & Associates and the author of "The Marine Corps Way to Win on Wall Street: 11 Key Principles from Battlefield to Boardroom" (St. Martin's Press 2016).

Over the course of more than 30 years Ken has advised scores of U.S. and international middle-market technology enabled firms on the best ways to buy, sell, grow and thrive. Along the way, he's been an entrepreneur (three times), a tech company CEO (twice), a senior corporate executive (twice) and an investment banker.

Seventeen years ago, Ken embarked on a journey to create a different sort of investment bank - one that would meld the investment banking skills he learned over 20 years on Wall Street with lessons he learned as a tech entrepreneur and the principles he learned during the decade he spent on active duty as a U.S. Marine Corps infantry officer. Today, Marlin & Associates is one of the most active M&A advisers in the information technology arena.

Institutional Investor Magazine has five times named Ken as one of II’s “Tech 50” and the II “FinTech 35” - both of which honor the most influential figures in the financial technology data and analytics sector.

Outside the office, Ken is a trustee of the Madison Square Boys and Girls Club, which serves underprivileged kids throughout the five counties of New York City; and an active supporter of the Phoenix House Foundation, The Wall Street Warriors Foundation, The Marine Corps Heritage Foundation, University of the People, the Hurricane Island Outward Bound School, and Outward Bound Peacekeeping.

Ken’s book has garnered strong reviews and is consistently ranked among the top in governance, finance and leadership. One reviewer called it a compelling vision to improve Wall Street by returning to solid core values like taking the long view, behaving with honor, delivering excellence and working for a cause greater than money.

Ken earned a BA from the University of California (Irvine), an MBA from UCLA, and a post-MBA Advanced Professional Certificate in Corporate Strategy from New York University. He lives in New York City with his wife, daughter, a dog, a cat and turtle.

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