IoT Driven M&A
Through Q3 2016, more than 150 Internet of Things (“IoT”) companies were merger and acquisition (“M&A”) targets — making 2016 on track to nearly double 2015, which was itself a record breaking year. IoT M&A targets during 2016 have been spread across the stack with a total disclosed value of $51.6 billion compared to just $31.9 billion a year earlier. Overall within 2016 high-tech M&A, significant activity has been seen within the semiconductor sector (total disclosed value of $54 billion) and computers/electronics and software/software as a service (“SaaS”) (total disclosed value of $46.1 billion).Traditional non-tech companies and original equipment manufacturers (“OEMs”) adding capabilities accounted for 39 percent of total corporate M&A transaction while the remaining 61 percent came from high-tech companies adding capabilities, vertically integrating or conducting preemptive strikes.
Over the past several years, there has been a lot of buzz surrounding IoT. Recent M&A transaction values and volumes indicate IoT is a firmly entrenched part of mainstream growth strategies, and companies are looking at it as a long-term driver of significant commercial value. IoT is real and here to stay.
Senior Managing Director