Contact

Buying companies in the IoT sector


, ,
Integral service around a transaction
BY : Diego GutiérrezNovember Thu, 2018

Discover the purchase of companies most relevant in the Internet of Things sector in 2018. This entry highlights the double acquisition made by Altair Engineering in a short period of time or the billionaire purchase of Fortive, among others.

Identiv acquires Thursby Software

Identiva global provider of physical security and secure identification, has entered into a definitive agreement to acquire Thursby Software in early November. Its products, software, systems and services address the markets for physical and logical access control, video analytics and a wide range of RFID-enabled applications.

The Californian company has customers in a variety of industries including government, education, healthcare, banking, retail and transportation. Identiv's mission is to secure the connected physical world: from the perimeter to desktop access, and from the world of physical things to the Internet of Everything (IoE).

Thursby is a provider of mobile security software based in Arlington, Texas. It has sold more than one million software licenses to a wide range of customers and industries, including government, healthcare, finance, energy, education, research, Fortune 500, Global 2000 and OEMs.

The acquisition is expected to strengthen Identiv's identity offerings with comprehensive solutions for a logical access, secure and convenient via smart cards and derived credentials on mobile devices. "This combination substantially strengthens our position as a trusted provider of high security solutions for government and enterprise customers," said Steven Humphreys, CEO of Identiv.

These capabilities have enabled more than 100,000 Department of Defence and federal government employees, including the US Navy Reserve, to use personal mobile devices to access needed information.

 

Two billion dollars to buy Accruent

11 September Fortive finally acquired the company Accruent to the private equity firm Genstar Capital. The transaction has been completed after being announced in October and has added a approximate amount of 2 trillion dollars in cash.

Fortive is a manufacturer of industrial products and its portfolio of IoT technologies includes a wide range of sensors, automation and field solutions.

James A. Lico, CEO of Fortive, said Accruent's software assets have strong cross-selling capabilities across the IoT asset management market. "The complementary strengths of Accruent, Gordian and Fluke Digital Systems will create an industry-leading IoT portfolio. This will consist of connected devices, software-enabled workflows and data analytics," he argued.

Founded in 1995, Accruent is a global software company that helps organisations achieve superior performance by transforming the way they manage their physical resources. It employs more than 1,100 employees and its solutions are used by more than 10,000 global customers in a wide range of industries. Under Genstar's two-year ownership, the company will doubled revenuessuccessfully completed nine acquisitions and rapidly expanded the international growth.

Genstar Capital is a leading private equity firm that has been actively investing in high-quality companies for 30 years. Based in San Francisco, it works in partnership with its management teams and network of strategic advisors to transform its portfolio companies into industry-leading companies. It currently has $10 billion of assets under management and targets investments in specific segments of the software, industrial technology, healthcare and financial services industries.

Altair Engineering in two parts

Altair (Troy, Michigan) transforms design and decision-making by applying simulation, machine learning and optimisation across product lifecycles. It has 71 offices in 24 countries and 2,000 employees on payroll, serving more than 5,000 customers across broad industry segments.

In a short period of time, it has confirmed two acquisitions in the Internet of Things sector. They are as follows:

 

Datawatch Corporation

On 5 November it was announced that Altair had signed a deal whereby Altair agreed to acquire Datawatch. Under the terms of the agreement, Altair will pay 13,10 dollars per share in cash, representing a fully diluted equity value of approximately USD 176 million.

Datawatch (Bedford, Massachusetts), is the data intelligence provider with market-leading enterprise data visualisation and predictive analytics solutions. Datawatch positions people and organisations to master all data, regardless of source, format or narrative, which equates to faster time to insight. Thousands of organisations of all sizes in over 100 countries use its products, with offices in New York, London, Toronto, Stockholm, Singapore and Manila.

James Scapa, CEO of Altair, commented: "Bringing Datawatch to Altair should result in a powerful offering that is consistent with our vision of transforming product design and decision making through the application of simulation, data science and optimisation throughout product life cycles.

 

Simsolid

Altair has confirmed the purchase of the Canadian company Simsolid on October 17th of this year. Simsolid works on full fidelity CAD (Computer Aided Design) assemblies to provide fast and accurate structural simulation. They were founded after asking the question "why does the geometry used in the structural design and simulation worlds have to be so different?"

"We believe Simsolid is a revolutionary technological breakthrough that will have a profound impact on product design and for our industry," said James Scapa. "Simsolid controls the accuracy of the solution through adaptive multi-pass analysis, which makes it extremely fast and memory efficient. Large and complex assemblies can be solved quickly even on laptops," he added.

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

M&A NEWS
INDUSTRIAL REPORTS
closearrow-circle-o-downchevron-downcrossmenu