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Joe Anto

E: janto@pcecompanies.com

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Industry Trends

U.S. to Boost Domestic Chip Manufacturing and Innovation

In August, the CHIPS and Science Act of 2022 was signed into law to reduce U.S. dependency on foreign semiconductor manufacturing and boost the nation’s science and technology base. The bill is set to allocate $54.2 billion in subsidies for the research and construction of blue-chip plants in the U.S., a 25% tax credit on buildings and equipment for the plants, and $174 billion in federal science and technology R&D programs through 2027.1

Adobe Set to Acquire Figma in Their Largest Acquisition Ever

Adobe announced its $20 billion acquisition of the leading design software platform Figma. The fifty-fifty cash and stock transaction represent Adobe's largest acquisition, surpassing its $4.75 billion acquisition of Marketo in 2018. Adobe has historically been highly acquisitive and bought has purchased companies over the past two years to sharpen its focus on collaboration tools. Adobe stated that the acquisition would help the company reach a new user base in addition to the designer community already using their tools.2

Streaming Platforms Turning to Ads for Continued Expansion

Streaming platforms, including Netflix and Disney+, are moving to ad-based subscriptions as the companies seek to accelerate growth after falling subscriptions this year. Netflix, which is set on a November launch, expects to add 40 million subscribers by Q3 2022, according to an internal document cited by The Wall Street Journal. Disney+ plans to launchits ad-subsidized version in December. The adoption of ads is expected to bite into the revenue of traditional television channels.3

Social Media Platform TikTok to Move into the E-commerce Space

The fast-growing social media platform, TikTok, plans to build out its product fulfillment centers in the U.S., directly competing with Amazon. The company will offer warehousing, delivery, and customer service returns, according to numerous online job descriptions. The e-commerce fulfillment system is planned to include international warehousing, customs clearing, and supply chain systems. TikTok has previously explored e-commerce in different markets, most recently through a deal with Shopify in 2021.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Citrix Systems, Inc.
  • TIBCO Software Inc.; Evergreen Coast Capital Corp.
  • $17,182.11
  • CDK Global, Inc.
  • Brookfield Business Partners L.P.
  • $8,340.71
  • Coherent, Inc.
  • Coherent Corp.
  • $7,730.79
  • Mandiant, Inc.
  • Google LLC
  • $7,550.85
  • SailPoint Technologies Holdings, Inc.
  • Thoma Bravo, L.P.
  • $7,465.86
  • CMC Materials, Inc.
  • Entegris, Inc. 
  • $6,728.02
  • Vonage Holdings Corp.
  • Telefonaktiebolaget LM Ericsson
  • $6,364.26
  • PDB Sports, Ltd.
  • Undisclosed Buyer
  • $4,650.00
  • Food Safety Business of 3M Company
  • Neogen Corporation
  • $4,342.31
  • Bungie, Inc.
  • Sony Interactive Entertainment LLC
  • $3,700.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • DataBank Holdings, Ltd.
  • Ardian; Swiss Life Asset Management AG; Northleaf Capital Partners Ltd.; EDF Invest; CBRE Investment Management
  • $1,500.00
  • GTY Technology Holdings Inc.
  • GI Manager L.P.
  • $428.54
  • Quixote Studios LLC
  • Hudson Pacific Properties, Inc.
  • $360.00
  • Diamond Baseball Holdings, LLC
  • Silver Lake Management, L.L.C.
  • $280.00
  • ACI Corporate Online Banking
  • OEP Capital Advisors, L.P.
  • $100.00

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Plantronics, Inc.
  • HP Inc.
  • $3,479.28
  • Brightly Software, Inc.
  • Siemens Smart Infrastructure
  • $1,875.00
  • NeoPhotonics Corporation
  • Lumentum Holdings Inc. 
  • $978.66
  • C&K Components, Inc.
  • Littelfuse, Inc. 
  • $540.00
  • Axios Media Inc.
  • Cox Enterprises, Inc.
  • $525.00
  • OMEGA Engineering, Inc.
  • Dwyer Instruments, Inc.
  • $525.00
  • Limited Partnership Interests in Five Wireless Partnerships
  • Cellco Partnership, Inc.
  • $490.00
  • GlideFast Consulting LLC
  • ASGN Incorporated 
  • $350.00
  • Crystal Dynamics, Inc./Eidos Interactive Corporation
  • Embracer Group AB 
  • $300.00

 

Source S&P Capital IQ as of 10/13/2022 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. "The CHIPS and Science Act of 2022." National Governors Associated, 22 August 2022.
  2. Tilley, Aaron. "Why Adobe Wants Figma and Why Some Investors Are Worried." The Wall Street Journal, 18 September 2022.
  3. Urbain, Thomas. "Netflix and Disney poised to shake up TV ad world." AFP, 25 September 2022.
  4. Fischer, Sara. "Scoop: TikTok chases Amazon with plans for U.S. fulfillment centers." Axios, 11 October 2022.
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