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Joe Anto

E: janto@pcecompanies.com

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Industry Trends

Big Tech Pushing Back On the Antitrust Bill

Lawmakers are working on passing an antitrust bill that would ban Big Tech companies from selectively favoring their offerings in an anti-competitive way. The bill has been subject to significant pushback and lobbying by tech giants, with more than $36 million spent on advertisements to oppose the legislation. Amazon, Google, and Apple state that the legislation would make it difficult to offer popular services and that it is fair for e-marketplaces to profit from their inventions.1 2

Global Chip Shortage To Extend Into 2024

Following two years of global supply-chain bottlenecks and high consumer demand, the semiconductor industry continues to suffer from chip shortages not expected to ease until 2024. The shortage has been further amplified by chip-makers struggling to acquire sufficient manufacturing equipment to support demand. Experts like Intel’s chief executive, Pat Gelsinger, who previously estimated the shortage would last until 2023, are now seeing the shortage extending into 2024 following a drop in quarterly sales.3

Ad Spending Slows

Estimates for total growth in global ad spending per Zenith have been revised from 9.1% to 8.0% for 2022. While this isn’t a significant recasting of projected advertising expenditures, it is an indication of concerns over global economic uncertainty. The estimates for growth in North American ad spending remain unchanged at 12% for 2022. 4

Tech Spending Expected To Remain High

A survey conducted by Gartner in May shows that 78% of CFOs plan to maintain or increase enterprise-wide digital investments for the next two years. These investments come at the same time as CFOs are planning cost reductions across other parts of the business as a response to higher inflation. The continued investment in tech builds on the momentum of digital acceleration and transformation set forth by the COVID-19 pandemic as companies work on improving efficiency.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Zynga, Inc.
  • Take-Two Interactive Software, Inc.
  • $13,848.66
  • Anaplan, Inc.
  • Thoma Bravo, L.P.
  • $10,384.81
  • AspenTech Corporation
  • Emerson Electric Co.
  • $6,339.12
  • Datto Holding Corp.
  • Kaseya Limited
  • $6,219.60
  • Bottomline Technologies, Inc.
  • Thoma Bravo, L.P.
  • $2,741.30
  • Pensando Systems, Inc.
  • Advanced Micro Devices, Inc.
  • $1,900.00
  • ETQ, LLC
  • Hexagon AB
  • $1,200.00
  • Streamlit, Inc.
  • Snowflake, Inc.
  • $711.90
  • Finxact, Inc.
  • Fiserv, Inc.
  • $650.00
  • StreamSets, Inc.
  • Software AG USA, Inc.
  • $588.43

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Zimperium, Inc.
  • Liberty Strategic Capital
  • $525.00
  • Franklin-Potter Associates, Inc.
  • Performant Capital
  • n/a
  • OuterBox Solutions, Inc.
  • WILsquare Capital LLC
  • n/a
  • Hotel Effectiveness Solutions, LLC
  • Alpine SG, LLC
  • n/a
  • Eberle Design Inc.
  • Vance Street Management LLC
  • n/a
  • Cleveland Data Center
  • Strategic Capital Fund Management, LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Rizing, LLC
  • Wipro Limited
  • $540.00
  • Xator Corporation
  • Parsons Corporation
  • $400.00
  • Wurl, Inc.
  • AppLovin Corporation
  • $389.56
  • NTT Security AppSec Solutions Inc.
  • Synopsys, Inc.
  • $330.00
  • EdgeCast, Inc.
  • Edgio, Inc.
  • $318.10
  • ModeX Therapeutics, Inc.
  • OPKO Health, Inc.
  • $300.00
  • TradeUP Global Corporation
  • SAI.TECH Global Corporation
  • $219.79

 

Source S&P Capital IQ as of 7/8/2022 and PCE Proprietary Data

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PCE Transactions

Contacts

Joe Anto

Orlando Office

407-621-2141 |

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Michael Poole

Orlando Office

407-621-2112 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. McKinnon, John, Tracy, Ryan & Day, Chad. "Big Tech Has Spent $36 Million on Ads to Torpedo Antitrust Bill.” The Wall Street Journal, 9 June, 2022.
  2. Gold, Ashley & Treene, Alayna. “Antitrust bill's progress sparks tech lobbying splurge.” Axios, 6 June, 2022.
  3. Joseph, Seb. “’Forecast on quicksand’: Ad spending Slows as Advertisers Wade Through Economic Uncertainty.” Digiday.com June 9, 2022.
  4. Feuer, W., Volz, D., & Uberti, D. (2022, March 8). Google to Buy Cybersecurity Firm Mandiant in $5.4 Billion Deal. The Wall Street Journal.
  5. “Gartner Says 78% of CFOs Will Increase or Maintain Enterprise Digital Investments Through 2023 Even if Inflation Persists.” Gartner, Inc., 25 May, 2022.
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