|  | What's New | The Latest Postings on Updata Circuit | |
|
| April 24, 2008
Excerpt from: Technology Bankers | | Updata Advisors Q1 2008 Information Technology M&A Review | - M&A Overview: Overall M&A Struggles, But Software And Services Tread On
According to FactSet Mergerstat, total announced global M&A deal value across all industry groups was... read more>>
What Is Driving M&A in the Technology Sector?
Growth remains the primary driver of value, and with the slowing economy organic growth as been more difficult to attain... read more>>
Internet: Internet M&A is off to a respectable start this year, with roughly the same number of deals... read more>> IT Services: There were 99 IT services deals tracked by Updata in Q1 2008, down only... read more>>
Enterprise Application Software: The number of enterprise application software deals tracked by Updata is down 28%... read more>>
Infrastructure Software: The number of infrastructure software deals remained roughly the same in Q1 2008 compared to... read more>>
IT Security: M&A activity in the security space is off to a relatively slow start in 2008... read more>>
| | |
| April 21, 2008
Excerpt from: Tech M&A Talk | | PE Firms Are Still Buying – At Least In The IT Services Sector | In the latter half of 2007, it was widely assumed that the macroeconomic environment would forestall any meaningful M&A activity on the part of private equity buyers across most sectors. Compared with the froth that PE firms churned up around tech and services in 2007, their role in 2008 was expected to be minimal, if not a thing of the past entirely. However, we were pleased to find a healthy level of IT services M&A activity driven by private equity firms so far in 2008. The biggest private equity deal in the IT services space was by far the buyout of TietoEnator by Nordic Capital, taking the large European integrator private for almost $2 billion. One of the stated objectives underlying the transaction was, in the words of Nordic Capital’s partner Robert Furuhjelm, to enable TietoEnator to “realize its full potential as an unlisted company without having to focus on short-term financial performance.” Other going-private transactions with similar long-term perspective include Charlesbank Equity’s offer – in tandem with David Pomeroy – to acquire infrastructure services firm Pomeroy IT Solutions for $85 million and 3i’s acquisition of UK public-sector services vendor Civica Plc for $364 million. While these deal values don’t approach some of the huge 2007 PE deals (Ceridian/THL Partners and FNF at $5.3 billion and CDW/Madison Dearborn for $7.3 billion are two examples), they do suggest optimism that IT services firms are undervalued and worthy of significant long-term investment. This is great news in a year when many expected private equity’s flattening or outright demise.  | | |
| April 21, 2008
Excerpt from: Technology Investors | | Former Senior Executive at Symantec, Credit Suisse Expands Leading Information Technology Venture Capital Investment Team | Updata Partners, a leading growth-stage venture capital firm focused in the information technology industry, announced that James Socas, former Senior Vice President and Head of Corporate Development at Symantec Corporation (Nasdaq: SYMC), has joined the firm as a General Partner based in the Reston, Virginia office. “James is an exceptional addition to the Updata team bringing with him that unique combination of operational experience, strategic insight, and deep software domain expertise that is at the core of Updata’s approach,” said John Burton, Updata Partners’ Managing General Partner. Mr. Socas led corporate development at Symantec, the world’s fourth largest independent software company, where he was responsible for mergers and acquisitions, venture investments, and strategic alliances. Prior to Symantec, he was a Managing Director and investment banker at Credit Suisse First Boston and Donaldson, Lufkin Jenrette where he advised many leading software companies in their strategic initiatives. Mr. Socas has also worked on the staff of the U.S. Senate Banking Committee and currently is appointed to serve on the State of Virginia’s Board of Corrections. He earned an M.B.A. from Harvard University and a B.A. from the University of Virginia. “Updata Partners is recognized as one of the most dynamic and respected venture capital firms in the industry,” said Mr. Socas, newly appointed Updata General Partner. “I am thrilled to work alongside the current team of world class partners to continue that record of success and drive the next stage of growth for the firm, its investors and our portfolio companies.”
| | |
| April 03, 2008
Excerpt from: Tech M&A Talk | | All Else Being Equal, Best-Of-Breed Software Vendors Are Still The Way To Go | | An empirical analysis by Updata suggests that best-of-breed enterprise infrastructure software vendors – those judged by analysts and opinion-makers (such as trade publications) as offering superior products in their space – command almost a 100% premium over non best-of-breed competitors. Research shows that, over the long term, best-of-breed solutions, which might cost more initially, are a better financial investment. The Aberdeen Group recently reported that in the security software sector, best-in-class deployments have 5 times fewer security incidents than the industry average, with 3 times better containment of deployment costs, and a 10 times better audit pass rate. The implication is that, at least in high-value spaces such as IT security, compliance management, and performance management, a better product drives significant incremental value and justifies premium pricing – both for the product and for the vendor at exit. | |
|
|
| | | Monthly Archives |  | April, 2008 | | March, 2008 | | February, 2008 | | January, 2008 | | December, 2007 | | November, 2007 | | October, 2007 | | September, 2007 | | August, 2007 | | July, 2007 | | June, 2007 | | May, 2007 | | April, 2007 | | March, 2007 | | February, 2007 | | December, 2006 | | November, 2006 | | October, 2006 | | September, 2006 | | August, 2006 | | July, 2006 | | June, 2006 |
|
