The return to health of international M&A activity has actually been rough, to state the least, but a slew of handle the innovation sector indicate a positive industry where conditions might be right for plenty more mergers and acquisitions, even in Europe.That’s the evaluation of Peter Globokar, handling director of Mooreland Partners, a shop financial investment bank which focuses on the information technology industry.Consolidation– stimulated by huge data– will likely persist, he believes, as this phenomenon continues to drive transformation in a range of sections, such as advertising. The next frontier, Globokar reckons, will be in innovation such as gesture recognition and augmented reality.Overall deal volumes throughout the previous twelve months have remained relatively stable throughout the technology sector in Europe.Dealogic reports 1,499 deals in the technology sector across Europe for 2012, which was 5 %down on 2011. Values of 489 of the deals were disclosed, of which 449 were worth less than $100m. Big deals and mega-mergers have actually been notable for their lack lately, and additional activity will be manipulated towards the lower end of the offer value spectrum.Another notable theme over the last couple of years is the reduction in hardware centric deal volumes– semiconductor related deals, for instance– both in regards to interest from tactical acquirers and monetary backers.
The truth is that the hardware sector is currently well combined; it requires high levels of financial investment, and associated organisations take a long time to remove, according to Globokar.That is not completely surprising. Software deals remain in vogue, driven by styles such as cloud computing, mobile devices and the big amount of data produced offered to corporations nowadays. Those patterns are likely to persist.On the data front, analytics stays one of the hot topics throughout a variety of sectors. One such area that has actually gathered recent attention– together with funding from financiers– is real time bidding platforms, provided by the similarity France’s Criteo. Real time bidding platforms utilise an auction-type approach to
assist in targeted marketing, based upon users ‘behavioural data. Globokar states that while some companies with associated offerings will likely be acquired, the huge variety of business working on the innovation indicates that fierce competitors will inevitably kill off the weakest.Next up is motion picking up and gesture recognition. Dow Jones Banking Intelligence recently put the spotlight on gesture acknowledgment, following tips that Israeli start-up Omek Interactive had actually caught the attention of Intel, Samsung Electronic Devices and Qualcomm; all of which were said to be thinking about a quote. It was said then that a prospective acquisition of Omek Interactive might well be the first of numerous such deals in the sector.Globokar shares a similar belief, recognizing any technology associated to motion picking up as progressively essential. Gesture recognition, and its importance for interacting with screens, will also draw interest from handset makers.”Israel has 4 or five– perhaps more– companies in this space that produce extremely fascinating targets. There will be activity in this area, that’s for sure.”And despite Europe’s despair, the continent hosts a variety of attractive targets.Swedens’s independently held Tobii Innovation, for instance, has a portfolio including software and hardware used to track eye motions, which could produce interest, according to Globokar. France-based Movea is another example with interesting technology. Likewise privately held, Movea boasts expertise in motion picking up options which it focuses on the mobile phone, interactive TELEVISION, and sports markets.Globokar likewise reckons that enhanced truth is likely to gain traction over the next few months, particularly as a commerce associated solution.
Item visualisation and so-called virtual dressing room services for retailers, for instance, are provided by companies such as France’s Total Immersion. Naturally Qualcomm has a presence in augmented truth, but other European companies with knowledge consist of Germany’s Metaio and Netherlands-based Layar.”Technologies of interest are those that change the method which we do things”, observes Globokar. And as pertinent initiatives continue to be developed, expect the innovation sector to remain active.– Rosemary Okolie is a columnist with Dow Jones Banking Intelligence on the telecoms, media and innovation sectors. She can be reached at +44 (0)20 7842 9463 or by email at firstname.lastname@example.org.This post initially appeared on DJ Banking Intelligence, our professional subscription-only service that offers transaction-focused forward-looking commentary and viewpoint from our sector experts. Further information are readily available at www.djbanking.com Source