Boss Insights - Weekly Software Sector M&A Round Up - 11th January 2019

11 January 2019

N26 Bank Announces $300 Million in Series D Funding Round and $2.7 Billion Valuation
Berlin, Germany – 10th January 2019 - Co-founders, of German digital bank, N26, Maximilian Tayenthal and Valentin Stalf, have announced they have become Europe's most highly valued, non-listed, fintech start-up, following a $300 million fundraising round that values the company at $2.7 billion. This surpasses all other fintech start-ups and makes N26 one of the most valuable tech start-ups in the world. The money will be used to finance penetration of the US, where their vision is to build a “truly global digital bank and a recognized brand for 100m+ customers”.  N26 also has plans to open more offices in Europe and around the world this year and to double its compliment of staff, currently 700. Their stated intent is “to disrupt one of the largest industries in the world - banking - and making it easier and more transparent for millions of customers.”
https://n26.com/en-gb/blog/n26-series-d-funding-round-2019

OneLogin Raises $100 million to Assist Enterprises with Identity and Access Management
San Francisco -10th January 2018 -  Cloud-based identity and access management (IAM) provider, OneLogin, has announced it has secured $100 million in a Series D funding round led by Greenspring Associations. OneLogin currently has over 2,500 enterprise clients and has more than tripled its annual recurring revenue over the past three years. Back in June 2018, OneLogin also raised $22.5 million as part of an extension of its Series C round, following $10 million and $25 million funding rounds in May 2017 and December 2014, respectively. The Series D brings its total capital raised to more than $170 million. OneLogin says that the cash will be used to increase adoption of new products and extend access management across networks and devices, using cloud infrastructure. Funds will also be allocated to increase OneLogin’s presence across North America and Europe and to augment their existing 250-person team.
https://www.onelogin.com

Kelly Services® Expands Engineering Footprint with the Acquisitions of Global Technology Associates, LLC and NextGen Global Resources, LLC
Troy, Michigan – 8th January 2019 - Kelly Services has announced two acquisitions: Global Technology Associates, LLC (GTA), a provider of engineering, technology and business consulting solutions and services in the telecommunication industry; and NextGen Global Resources, LLC (NextGen), a provider of telecommunications, wireless and connected technology staffing solutions in the U.S. Both companies provide services to the largest carriers and OEMs in the telecommunication industry, and the acquisitions position Kelly as one of the largest engineering workforce solutions companies in the fast-growing 5G technology space. Terms of the acquisitions, which were effective at the start of the new year, were not disclosed. GTA and NextGen will continue to operate under their own brands.
http://press.kellyservices.com/news-releases/news-release-details/kelly-servicesr-expands-engineering-footprint-acquisitions

Motorola Solutions Acquires VaaS International Holdings, Leader in Data and Image Analytics for Vehicle Location
Chicago, Livermore, California and Fort Worth, Texas – 7th January 2019 – Motorola Solutions, Inc. has announced it has acquired VaaS International Holdings, Inc, a data and image analytics company based in Livermore, California and Fort Worth, Texas. Motorola Solutions paid a purchase price of $445 million in a combination of cash and equity. VaaS, a “Video analysis as a Service” company, is a global provider of data and image analytics for vehicle location. The company’s image capture and analysis platform, which includes fixed and mobile license plate reader cameras driven by machine learning and artificial intelligence, provides vehicle location data to public safety and commercial customers. Its subsidiaries include Vigilant Solutions for law enforcement users and Digital Recognition Network (DRN) for commercial customers. The company’s 2019 revenues are expected to be approximately $100 million. “Automated license plate recognition is an increasingly powerful tool for law enforcement,” said Greg Brown, Chairman and CEO, Motorola Solutions.  “With this acquisition, VaaS will expand our command center software portfolio with the largest shareable database of vehicle location information that can help shorten response times and improve the speed and accuracy of investigations.” 
https://newsroom.motorolasolutions.com/news/motorola-solutions-acquires-vaas-international-holdings-leader-in-data-and-image-analytics-for-vehicle-location.htm

Elavon Acquires CenPOS, Enhancing Elavon’s Digital Capabilities, Integrating Payments into CenPOS Software
Minneapolils – 9th January 2019 - Elavon, a global payments provider and subsidiary of U.S. Bancorp, has acquired CenPOS, a Miami-based company offering integrated payment software solutions to large enterprises. CenPOS focuses on three industry verticals: automotive, travel and entertainment (T&E), and general business-to-business transactions, which aligns well with Elavon’s strengths. Increasingly, business owners expect that the software packages they use to run their businesses will come with payments acceptance and processing embedded in the software offering. Elavon is paving a way to future growth by integrating with these software packages. “Elavon recognizes the tremendous potential we have to bring greater value to our customers by integrating with software companies like CenPOS,” said Jamie Walker, CEO of Elavon. “More and more, businesses are choosing their payment provider based on the software solutions they use to manage other parts of their operations. With this acquisition, customers of both companies will benefit from the strengths and opportunities these organizations offer in important industry segments.”

https://newsroom.elavon.com/press-release/elavon-acquires-cenpos-enhancing-elavons-digital-capabilities-integrating-payments

CTG Announces Agreement to Acquire Luxembourg-based Tech-IT for $10.3 Million

Buffalo, New York – 3rd January 2019 – CTG, Inc, a provider of information technology (IT) solutions and services in North America and Western Europe, has announced a definitive agreement to acquire Luxembourg-based Tech-IT PSF S.A., a consulting and IT solutions company, through its subsidiary CTG Luxembourg PSF S.A. “The addition of Tech-IT’s strategic solutions and infrastructure services will further strengthen our established market position in Luxembourg by broadening our portfolio to offer complete end-to-end IT solutions,” said current CTG President and Chief Executive Officer Bud Crumlish. He continued, “With minimal client overlap, this proposed transaction provides significant cross-selling opportunities, while deepening our penetration in key end-market verticals and enabling us to pursue broader and more substantial IT solutions projects.” Hh
https://www.ctg.com/press-releases/ctg-announces-agreement-acquire-luxembourg-based-tech-it

Conduent Completes Acquisition of Health Solutions Plus to Provide Core Administrative Processing Technology
Florham Park, New Jersey - 3rd January 2019 - Conduent Incorporated has announced it has completed its acquisition of Health Solutions Plus (HSP), a software provider of healthcare payer administration solutions. The acquisition enables Conduent to better serve current and prospective commercial and government payer clients with core administration processing technology. In particular, with the purchase of HSP, Conduent offers a modern Core Administration Processing System (CAPS) solution, which is a key connector of administrative functions for healthcare funding entities, including commercial payers, managed care organizations, state Medicaid agencies and Medicare Advantage payers. “This purchase strengthens our leadership position in the market, enhancing our capacity to connect the entire healthcare ecosystem,” said Pratap Sarker, Group Chief Executive, Conduent, Financial Services and Healthcare. “We can now bring an end-to-end healthcare payer administration solution to our commercial and government payer clients, helping them achieve operational efficiencies, lower costs and an enhanced digital experience for members and providers.”
https://www.news.conduent.com/news/conduent-completes-acquisition-of-health-solutions-plus-to-provide-core-administrative-processing-technology

Foreside Announces Acquisition of NCS Regulatory Compliance to Enhance
Portland, Maine – 3rd January 2019 – Foreside Financial Group, LLC, a provider of distribution and compliance services to clients in the global asset management industry, has announced the acquisition of NCS Regulatory Compliance, a comprehensive provider of outsourced compliance and regulatory solutions to the Registered Investment Adviser and Broker-Dealer markets. The combination of Foreside and NCS provides a full-suite of best-in-class outsourcing solutions to companies across the financial services industry, as clients increasingly demand a one-stop shop for their business processes. “We’re committed to providing our clients with a comprehensive and holistic set of solutions to streamline and increase revenue opportunities, as well as to quickly expand and launch new products, all in one place,” said David Whitaker, President of Foreside. “In addition to best meeting our clients’ needs in the midst of an ever-changing regulatory landscape, NCS’s leading technology-enabled financial services compliance solutions, paired with their deep industry expertise, both complements and drives forward our strategic plan to grow our market position and broaden our breadth of services globally.”
https://www.foreside.com/wp-content/uploads/2018/12/Press%20Release%20Foreside%20acquires%20NCS.pdf

Blackbaud Acquires Market-leading Corporate Social Responsibility Provider YourCause
Charleston, S.C. – 2nd January 2019 - Blackbaud, Inc, a cloud software company powering social good, has announced the acquisition of YourCause™, an organisation offering software solutions for enterprise philanthropy, corporate social responsibility and employee engagement. Purchase price for YourCause was approximately $157 million. “We understand that business success today is more than finances; it’s also critical to engage on social issues,” said Mike Gianoni, President and CEO of Blackbaud. “In a time where 84 percent of Americans believe businesses shoulder a responsibility to bring social change, providing those businesses with the right tools not only helps attract and retain customers and employees, but it helps to build a better world.”
https://www.blackbaud.com/newsroom/article/2019/01/02/blackbaud-acquires-market-leading-corporate-social-responsibility-provider-yourcause

Iron Mountain Acquires Lane Archive Technologies Limited, Expanding Operational Presence in the Philippines
Manila, Philippines – 1st January 2019 - Iron Mountain Incorporated, the global storage and information management services organisation, has announced the acquisition of Lane Archive Technologies Limited in the Philippines, expanding the company's presence in the country. The acquisition will add eight facilities in Manila, Davao and Cebu to Iron Mountain's existing Philippine operations, delivering records management, data management, document management and secure destruction to nearly 1,000 customers. "The acquisition of Lane Archive Technologies is a key milestone for our Philippines business, significantly expanding our operations in Manila and adding talented members of the Lane team," said Peter Hwang, Managing Director, Iron Mountain Asia. "With operations in the country's major business and commercial centers, we are adding scale and availability for our local and regional business, as well as our international customers with operations in the Philippines. This strengthens our in country presence while building upon the high levels of service that our customers expect for their information management needs."
https://www.ironmountain.com/about-us/news-events

3M to Acquire M*Modal’s Technology Business for $1 Billion
St. Paul, Minn. & Franklin, Tennessee - Dec 2018 - 3M has announced that it has entered into a definitive agreement to acquire the technology business of M*Modal, for a total enterprise value of $1.0 billion. M*Modal is a healthcare technology provider of cloud-based, conversational Artificial Intelligence (AI)-powered systems that help physicians efficiently capture and improve the patient narrative so they can spend more time with their patients and provide higher quality of care. “This acquisition builds on our strategic commitment to invest in our Health Information Systems business and expands the capabilities of our revenue cycle management and population health priority growth platform,” said Mike Vale, Executive Vice President, 3M Health Care Business Group. “Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers.”
Annual revenue of M*Modal’s technology business is estimated to be approximately $200 million.
https://news.3m.com/press-release/company-english/3m-acquire-mmodals-technology-business