Monthly Software Sector M&A Round Up & Insights

03 July 2018

Convergys to be Acquired by SYNNEX Corporation for $2.8 Billion in Cash and Stock

Cincinnati – 28th June 2018 - Convergys Corporation a customer experience outsourcing company, has announced that it has entered into a definitive agreement under which SYNNEX Corporation, a business process services company, will acquire Convergys in a cash and stock transaction with an enterprise value of approximately $2.8 billion, including approximately $170 million of Convergys outstanding net debt. Following the close of the transaction, it is expected that Convergys will be combined with SYNNEX’s CRM BPO subsidiary, Concentrix, thereby enhancing the capabilities and talent of both organizations and creating a premier global customer engagement services company.

Amazon to Acquire PillPack

Seattle & Boston – 28th June 2018 - Amazon and PillPack have announced that they have entered into a definitive merger agreement under which Amazon will acquire PillPack. PillPack is a pharmacy designed to provide the best possible customer experience in the U.S. for people who take multiple daily prescriptions. PillPack delivers medications in pre-sorted dose packaging, coordinates refills and renewals, and makes sure shipments are sent on time. “PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” says Jeff Wilke, Amazon CEO Worldwide Consumer. “PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier,” said TJ Parker, co-founder and CEO of PillPack. “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the U.S. who can benefit from a better pharmacy experience.”

KnowledgeLake Acquired by Original Founder

St Louis – 27th June 2018 - As one of the original founders in 1999, Ron Cameron, with the support of Plymouth Growth Partners and First Bank, re-acquires the privately owned company, KnowledgeLake, Inc. "I am truly excited to jump back into my position as founder and CEO of KnowledgeLake. This company has always been close to my heart, and I am happy to take it to the forefront of the transactional content management [TCM] marketplace for the benefit of our customers, our employees, and Microsoft" said Cameron. As one of the original founders in 1999, Ron Cameron, with the support of Plymouth Growth Partners and First Bank, re-acquires the privately owned company, KnowledgeLake, Inc. "We are evolving with all of the Microsoft content platforms, including SharePoint, SharePoint Online, and OneDrive.  Our customers demand that we stay ahead of their needs and we plan to," says Cameron. "We are innovating and investing heavily to reaffirm our leadership in the $3 billion Microsoft content services market."

Magnitude Software Acquires SAP Business Analytics Innovator Every Angle  

Austin, Texas – June 27, 2018 – Magnitude Software, Inc., a company which delivers unified application data management to global organizations across industries, has announced the acquisition of Every Angle Software Solutions, a provider that enables users of SAP-run organizations to optimize their operational performance by empowering insightful and flexible business analytics. This third acquisition in the past eight months, and seventh in total, immediately expands Magnitude’s leadership presence in the SAP ecosystem alongside providing a mature base of operations in Europe. “Magnitude’s mission is to simplify the complex application landscape for our customers and help them realize significant productivity gains by unlocking the value promised by enterprise platforms like SAP,” said Chris Ney, Chairman and CEO of Magnitude Software.

Dimension Data acquires a majority stake in e2y to strengthen global digital commerce capabilities

London, UK – 19 June 2018 – Dimension Data has announced the acquisition of a majority of e2y, an award-winning digital commerce consultancy with a track record for executing state-of-the-art business transformation projects to its global clients, for an undisclosed sum. This adds a complementary set of skills to Dimension Data’s core value proposition around systems integration, managed services and specifically in this area providing services that add to digital infrastructure consulting and services proposition. Scott Gibson, Group Executive for Digital Business Solutions at Dimension Data said, “The strength of e2y in the UK and Europe, combined with Dimension Data’s presence in the Middle East and Africa, the Americas and Asia Pacific, will open up new markets for our clients to leverage a truly compelling digital commerce solution”.

InMobi Forms Strategic Partnership with Microsoft to Power New Cloud-Based Enterprise Platforms for Marketers

26th June 2018 - InMobi, a global provider of enterprise platforms for marketers, has announced a strategic partnership with Microsoft Corp. to enable new-age CMOs in their transformational journey from digital to mobile marketing. The partnership will consist of InMobi moving to Microsoft Azure as its preferred cloud provider and will involve technology collaboration and combined go-to-market strategies aimed at accelerating the way marketers are looking at their advertising and marketing strategies in an always-connected world. “As digital technology is transforming every industry and every aspect of our lives, companies are seeking new ways to engage customers where they are, with connected, personalized experiences,” said Satya Nadella, CEO, Microsoft. “The combination of Microsoft Azure with InMobi’s marketing platforms will deliver new intelligent customer experiences and business insights to organizations around the world.”

Cisco Announces Intent to Acquire July Systems

Burlingame, Calif. And Bangalore, India – 19th June 2018 – Cisco have announced that they are to buy privately-held July Systems and its cloud-based mobile experience and location services platform to bolster their Enterprise Wi-Fi platform and enable superior indoor location services capabilities. July Systems provides an enterprise-grade location platform with features such as instant customer activation, data-driven behavioural insights, contextual rules engine and APIs. The solution is a cloud-based, subscription offering with a global footprint and backed by end-to-end SLA. Cisco has worked closely with July Systems for several years as an OEM for Cisco Connected Mobile Experience(CMX). Cisco plans to add July Systems’ platform and business context capabilities to provide a unified solution on which their partners and customers can build and deliver a range of indoor location services for industries as diverse as healthcare, government, logistics, manufacturing, sports arenas, hotels, education and retail. Some of our CMX Engage customers include Intercontinental Hotels Group (IHG) and Westfield Corp. Cisco recently announced that it is opening up its intent-based networks with a suite of powerful new developer tools. The July Systems acquisition ties into this vision of creating an open, programmable platform for innovation.


Iron Mountain Acquires Arhiv Trezor, Enters Croatian Market

Zagreb, Croatia – 18th June 2018 - Iron Mountain Incorporated, the storage and information management services company, has announced it has entered the Croatian market with the acquisition of Arhiv Trezor, a provider of records management, secure destruction and secure transportation. This acquisition will give Iron Mountain its first facility in country. "The acquisition of Arhiv Trezor is an important step in our efforts to grow our presence within south eastern Europe," said Andras Szakonyi, Senior Vice President, Northern and Eastern Europe and India, Iron Mountain. "The opportunity to enter the market by acquiring a company with such a solid reputation and important customer base, made Arhiv Trezor an attractive option for Iron Mountain. And, since Croatia is a member of the European Union, its economic and cultural connections to other Central and Southeastern European markets are very strong, allowing us the opportunity to leverage our global scale to help local, regional and multinational customers with their records and information management needs."


Enterprise File Sharing and Synchronization (EFSS) Market Overview 2018 to 2025

18th June 2018 - The global Enterprise File Sharing and Synchronization (EFSS) market was valued at USD 1.45 billion in 2016 and is projected to reach USD 8.59 billion by 2025, growing at a CAGR of 24.9% from 2017 to 2025. Enterprise file synchronization and sharing (EFSS) refers to software services that enable organizations to securely synchronize and share documents, photos, videos and files from multiple devices with employees, and external customers and partners. Organizations use these technologies to prevent employees from using consumer-based file sharing apps to store, access and manage corporate data that is outside of the IT department’s control and visibility.


IBM Acquires Oniqua

Armonk – 15th June 2018 - IBM has acquired Oniqua, a global innovator in maintenance-repair-operate (MRO) inventory optimization solutions and services for asset-intensive industries. The Oniqua inventory platform combines statistical analyses, prescriptive analytics, and optimization algorithms to deliver decision support through informative dashboards. Most asset-intensive organizations have siloed and unstructured data scattered across multiple business units. Without access to current data on key assets, it's difficult to take timely action — which can have dire business consequences. Oniqua helps reduce unscheduled downtime by constantly monitoring and analyzing enterprise-wide asset inventory data. These insights help ensure the right parts and materials are available when required. The acquisition of Oniqua expands IBM Asset Optimization Practice capabilities as well as enhancing the IBM solutions-as-a-service portfolio.


Closing a Deal with Private Equity – Tips for the Tech Industry M&A Professional

They once seemed like unlikely partners. But these days, our Technology, Media and Telecommunications Deals leader, Marc Suidan, comments, most of his corporate M&A projects with tech involve PEs. A record number of tech-focused PE deals are taking place, and several PEs are focusing exclusively on the tech sector. As technology is expected to remain a significant portion of the economy, the PE investment trend is expected to continue through 2018. How does involving private equity firms change the dynamics of deal making? How can tech and PE firms bridge their complementary, but distinct, mindsets to create a win-win scenario? And what’s ahead? Marc and Ben Gillikin, Private Equity Deals Partner, recently discussed what PEs are looking for in a tech acquisition and what tech companies should consider as they look at partnering with private equity investors.


TA Associates Announces Acquisition and Combination of Global Software, Inc. and International

14th June 2018 - Global Software, Inc. and International combine in merger of equals to create a world-class ERP reporting and corporate performance management company

Boston, MA and Raleigh, NC - TA Associates, a global growth private equity firm, has announced the acquisition and combination of Global Software, Inc. and International, two ERP reporting and corporate performance management software companies with over 6,000 enterprise customers globally and more than 75,000 end users. Financial terms of both transactions were not disclosed.

Software AG Announces Acquisition of TrendMiner NV

Darmstadt, Germany - 12th June 2018 - Software AG has announced the acquisition of TrendMiner NV. Founded in 2008 and based in Hasselt, Belgium, TrendMiner specializes in visual data analytics for the manufacturing and process industry and will complement Software AG’s Cumulocity Internet of Things (IoT) and Industry 4.0 product portfolio. Following its acquisitions of artificial intelligence (AI) specialist Zementis (2016) and Cumulocity IoT (2017), Software AG’s acquisition of TrendMiner is consolidating its position in the rapidly growing IoT market. Karl-Heinz Streibich, Software AG CEO, stated, “TrendMiner provides an ideal fit into our Cumulocity IoT portfolio at a strategically decisive moment. We are in a phase of dynamic market development for IoT applications. Together with TrendMiner, we will be able to offer a leading streaming and visual time-series analytics platform – A unique combination.”


TIBCO Software Acquires Integration Platform-as-a-Service Leader Scribe Software

6th June 2018 - TIBCO Software Inc., a global organisation, specialising in integration, API management and analytics, has announced the acquisition of Scribe Software, an innovative, cloud-based integration service that helps more than 10,000 businesses efficiently connect Software-as-a-Service (SaaS) applications and automate data flows using an intuitive browser-based approach. “By strengthening TIBCO’s Connected Intelligence Cloud with Scribe’s unique data automation and SaaS integration capabilities, we enable the broadest set of users to participate in digital transformation efforts,” said Matt Quinn, Chief Operating Officer, TIBCO. “Scribe’s straightforward, code-free method of creating, testing and managing data flows, enables thousands of customers and partners to quickly and easily connect their SaaS apps for better business performance.”


Texas tech firm acquires High Alpha's ClearScholar 

Indianapolis – 12th June 2018 - ClearScholar Inc. has been acquired by Civitas Learning Inc., an Austin, Texas-based education-tech company that supplies its data-gathering and packaging platform to more than 350 colleges and universities. Financial terms of the deal were not disclosed. Founded in 2016, ClearScholar is the second company in the High Alpha portfolio to be snapped up in the last four months. Locally based High Alpha is a startup studio that provide expertise and capital to launch companies that backers hope will generate big returns. In March, Indianapolis-based tech firm Octiv Inc. was acquired by Conga, a Colorado-based document automation firm with about 350 employees. It is expected to retain its local presence.

Foreign investment in UK tech firms doubles in just one year 

The UK’s tech sector is soaring ahead of its competitors in Europe, attracting more venture capital investment last year than Germany, France and Sweden combined. British tech businesses attracted $7.8bn (£5.8bn) of funding last year, which was almost double the amount received in 2016. Research by Dealroom and Tech Nation showed that the UK’s venture capital investment last year was higher than Germany’s total of $3.2bn and France, which brought in $2.8bn. The boost to its tech sector has propelled the UK’s growth of foreign direct investment (FDI), helping it to remain the top destination for such funding. According to a report by EY, there was a 22pc increase in digital investment into the UK, which helped to offset a decline in investment to sectors such as a financial services and logistics, due to investor concerns over Brexit. Investment into the UK’s manufacturing sector also remained resilient, increasing by 17pc.

Envision Healthcare to be Acquired by KKR for $9.9 Billion in All-Cash Transaction

Nashville, Tennessee – 11th June 2018 - Envision Healthcare Corporation has announced it has entered into a definitive agreement to be acquired by global investment firm, KKR, in an all-cash transaction for approximately $9.9 billion, including the assumption or repayment of debt. Under the terms of the agreement, which has been unanimously approved by Envision's Board of Directors, KKR will acquire all of the outstanding shares of Envision's common stock for $46.00 per share in cash, representing a 32% premium to Envision's volume-weighted average share price (VWAP) from November 1, 2017, the day immediately following the Company's first announcement that it was reviewing strategic alternatives. The transaction price represents a multiple of 10.9x trailing 12 months Adjusted EBITDA and 10.1x 2018 anticipated Adjusted EBITDA.1


Accruent to Expand CMMS Leadership with Acquisition of Maintenance Connection

Austin, TX, June 6, 2018 – Accruent, a provider of physical resource management solutions, has announced a definitive agreement to acquire Maintenance Connection, a Computerized Maintenance Management System (CMMS) provider. This agreement accelerates Accruent’s efforts to help customers gain insight and make data-driven decisions for multi-site facility management. Customers will be able to view their physical resource assessments, view data from IoT sensors, trigger maintenance orders and have a full view of their engineering documentation. Maintenance Connection’s software helps maintenance teams manage work orders, organize and execute preventative maintenance, predict asset maintenance, and manage enterprise assets and equipment inventory. It is built to handle the needs of complex enterprises with capabilities that include multi-site deployment, IoT sensors and M2M (Machine-to-Machine) data exchange to generate insights into asset management.

SaaS Valuations Getting Crazier

By Sammy Abdullah – 6th June 2018 - Valuations for SaaS are higher than they’ve ever been since we started keeping track of the data in Q4 2014: of the 77 SaaS companies we follow, the average public SaaS business is trading at 10.07x revenue while the median is 9.32x. Negative EBITDA, positive cash flow. The median SaaS business had trailing twelve-month revenue of $302mm, EBITDA of -$16mm, but positive cash flow of $20mm thanks to deferred revenue and up-front collections on annual contracts. Indeed so long as you’re growing (the median annual growth rate is 14%), investors will overlook negative EBITDA especially if the business is cash flow positive after working capital changes.

Accruent Acquires EMS Software, Strengthening Its Space Management Platform

Austin, TX, June 4, 2018 – Accruent, a provider of physical resource management solutions, has acquired EMS Software, bringing its workplace and campus management platform into Accruent’s portfolio, and offering customers the ability to make data-driven meeting space planning decisions. This acquisition continues to build on Accruent’s strategy to deliver the entire lifecycle of managing physical resources to core industries including enterprises, higher education, healthcare, and the public sector. “The mission of our clients is to optimize their physical spaces, create a stellar working or learning environment and reduce costs.  We acquired EMS Software because their platform helps our customers achieve their missions,” said John Borgerding, CEO, Accruent.  “When integrated with our existing portfolio, organizations get the analytics and insights they need to make data-driven space planning decisions.  We are learning from our 175 joint customers and are proud to continue investing in the EMS platform.”

WorkXO Acquired by Long-Time Partner Questionpro

QuestionPro has announced that it has acquired WorkXO, which has now become a wholly owned subsidiary of QuestionPro. Founded in 2015, WorkXO created a revolutionary model for measuring workplace culture, a powerful proprietary technology for analyzing it and a proven methodology for ensuring organizations get and stay intentional about managing it. Clients like T-Mobile, Cisco, NBC Universal, Security First Bank, and Southern Dental Alliance use WorkXO’s first-of-its-kind culture management platform – Workplace Genome® – to turn workplace culture into a competitive advantage.  Vivek Bhaskaran, Founder, QuestionPro said in a release about the acquisition: “We feel strongly that culture should and will be at the heart of the next wave of workforce technology. In taking that next step, I’m excited and honored to work with Charlie and his team to scale WorkXO to the broader market while having him lead the way in a new chapter in our QuestionPro Workforce platform.”

Vora Ventures Acquires ShakeDeal, India’s Leading B2B Online Marketplace

Major investment from US based private equity into B2B Commerce in India, a $1 trillion market. Vora Ventures, a US based private equity firm, specializing in building B2B information technology companies, has announced that it has acquired ShakeDeal (, India’s first B2B bulk sourcing online marketplace for Industrial Goods, Supplies, and Raw Materials. The investment will be used to support the ongoing growth and expansion of ShakeDeal into new vertical markets and product lines and to make it a preferred destination for businesses in India to purchase supplies, tools and raw materials.


Microsoft to acquire GitHub for $7.5 billion

Redmond, Washington - June 4, 2018 - Microsoft Corp. has announced it has reached an agreement to acquire GitHub, a software development platform where more than 28 million developers learn, share and collaborate to create the future. Together, the two companies will empower developers to achieve more at every stage of the development lifecycle, accelerate enterprise use of GitHub, and bring Microsoft’s developer tools and services to new audiences. “Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation,” said Satya Nadella, CEO, Microsoft. “We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.” Under the terms of the agreement, Microsoft will acquire GitHub for $7.5 billion in Microsoft stock. Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to close by the end of the calendar year.


Roper Technologies Completes Acquisition of PowerPlan for $1.1 Billion

Sarasota, Florida, June 4, 2018 - Roper Technologies, Inc, a diversified technology company, has announced that it has completed its previously announced acquisition of PowerPlan. The Company funded the transaction with its revolving credit facility and cash on hand. PowerPlan is a provider of software and solutions for asset-centric companies, enabling its customers to optimize their financial performance and achieve regulatory compliance. “We are excited to officially welcome PowerPlan to the Roper family,” said Brian Jellison, Roper’s Chairman, President and CEO. “PowerPlan is an outstanding company and enjoys clear leadership in its niche market with numerous growth opportunities and a strong financial profile.”