The business ecosystem related to data analytics, management software, artificial intelligence and big data and cloud services are enjoying these months of intense corporate activity. According to a study by the international consulting firm Houlihan Lokey, to which elEconomista has had access, the amount of mergers and acquisitions carried out in the last two years is close to 20,000 million dollars, including large-scale operations whose amount has not transpired . This is the case of the purchase of Databand by IBM or that made by Logi Analytics, now in the hands of Insight Software.
The technological sophistication of large corporations is highlighted in the voracity of companies to improve their capabilities in data management, integration, analytics and monitoring. In fact, the aforementioned volume of purchases doubles, up to 40,000 million dollars, if mergers and acquisitions between 2019 and last summer are counted.
The same research highlights that the pandemic has forced thousands of corporations to improve the efficiency of their processes, with a higher percentage of remote workers, which forces them to adopt data analytics tools whose deep knowledge is in the hands of a few. global providers.
The study indicates that companies are beginning to move away from local data centers to trust their information in native cloud locations, with advantages and facilities for resource scalability. They also see the need to manage and analyze data in real time, with customizable queries and capabilities to anticipate customer churn and prevent possible fraud.
By volume, the largest operation in recent months corresponds to the investment firm Clearlake Capital, a group that in November 2021 disbursed more than 5,400 million dollars (5,540 million euros) for all of Quest Software, a global provider of software for cybersecurity, data intelligence and information technology operations management. This company was called to “enable customers to maintain controls, mitigate and contain security threats proactively, to ensure operational uptime and reduce costs.”
Very close to the previous one in economic amount was the purchase of Cloudera by the KKR investment fund, in exchange for 5,300 million dollars (5,440 million euros) the entire amount in cash, with valuations of 6.4 times EBITDA. Precisely, that purchase occurs weeks after Cloudera itself integrated the Datacoral and Cazena firms into its company.
At the end of last year, the Californian Francisco Partners, a leading global investment fund specialized in technology companies, and the private equity platform TPG Capital, bought Boomi for 4,000 million dollars (4,150 million euros), with a valuation of 16 times ebitda. It is a company controlled by Dell Technologies that houses a cloud-based integration platform as a service (iPaaS).
Software AG’s $591 million purchase of Streamsets highlighted the need for cloud-native capabilities by companies with a strong market presence.
Houlihan Lokey, the firm responsible for the report, is a firm specialized in business advice in the field of data infrastructure and analysis software, with extensive experience in advising on mergers and acquisitions and capital raising operations.