2011 M&A Transaction Values Already Top Last Year

Register now

November 4, 2011 – Transactions in the information management space are up from 2010 and that is expected to carry on into 2012 through a mix of market interest and vendor positioning, according to new findings from merger and acquisition advisory firm Berkery Noyes.

In its Q3 trends report, Berkery Noyes noted the value of the 768 mergers and acquisitions at $39.4 billion, down slightly from that same quarter last year, but part of a 2011 that has already topped transaction values from 2010. The most active buyer during the third fiscal quarter was Google, with 20 acquisitions, and HP’s $10.2 billion deal for analytics provider Autonomy was the biggest of the quarter and 2011 fiscal year so far, Berkery Noyes reported.

Bryan Bellmare, VP at the advisory firm, says overall economic pressures have not truly made a dent in the information management space ever since transactions rebounded at the start of 2011. While recession fears could play into some market hesitation with the seller pipeline into the new year, information management, IT and BI vendors are in a unique spot in terms of value and innovation, says Bellmare.

“We’ve seen a number of companies examining their market positions and determining what markets they truly want to focus on, and then deciding to divest non-core assets outside of those areas. These non-core assets have often been very good businesses in their own right. Many are able to achieve excellent multiples from industry participants with interest and other assets in their particular space,” Bellmare says. “We expect this to continue heading into 2012 and beyond.”

With $49.7 billion in transactions, Q2 of 2011 was the leader over the last seven fiscal quarters, and Q1 of 2011 had the most mergers and acquisitions over that same time frame with 796 transactions, according to Berkery Noyes.

On the heels of a leadership change at HP and one coming at IBM, executive promotions at those and other top vendors may shine a light on transactions to come in Q4 of 2011 and early 2012, Bellmare says.

“If [executive changes] are accomplished by promotions from within, we would expect to see a continuation of current strategies and initiatives. If the changes are effected by new executives coming in from outside the company, we would look for a period of relative quiet while new management reviews current initiatives and determines its future plans,” Bellmare says.

For reprint and licensing requests for this article, click here.