MASiV focuses on how the most successful software and internet companies use M&A to innovate, grow, and compete. Woodside Capital Partners brings together influential corporate development executives and business unit leaders with CEOs and venture capitalists to talk about current trends in M&A.
Lundin Gold April 2024 Corporate Presentation v4.pdf
2013 M&A Silicon Valley Gathering (MASiV)
1. MASiV 2013: The M&A Silicon Valley Gathering
M&A Market:
Overview, Thoughts and Insights
Kelly Porter
Managing Director, Woodside Capital Partners
M&A Silicon Valley Gathering
January 17-18, 2013
2. MASiV 2013: The M&A Silicon Valley Gathering
The Key M&A Market Driver : CEO Confidence
Source: Vistage CEO Survey, responses from 1,601 U.S. CEOs, surveyed between December 10 and December 19, 2012
3. MASiV 2013: The M&A Silicon Valley Gathering
150%
Stock Market Indices Growth
75%
0%
‐75%
‐150%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
NYSE Composite Hang Seng Index
Global M&A by Value
$3,662
$3,407
$3,168
$2,470
$2,537 $2,433
$2,288
$1,728 $1,851
$1,519 $1,607
$1,207
$1,056
2000 2002 2004 2006 2008 2010 2012
Source: Capital IQ
4. MASiV 2013: The M&A Silicon Valley Gathering
U.S. M&A Activity as a Percentage of Market Capitalization
11%
10%
9%
7%
7% 7% 6%
6% 6% 6%
5%
4% 4%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Thompson Reuters M&A Database
5. MASiV 2013: The M&A Silicon Valley Gathering
Global Tech Acquisitions
In Dollar Volume (Billions)
$500
$B
$400
$300
$200
$100
$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
M&A IPO
Source: Capital IQ
6. MASiV 2013: The M&A Silicon Valley Gathering
$B
2012 Global Tech M&A – by Month
$25 1600
$23
1400
$20 $19
1200
$15 $15
$15 $14
$13 1000
$10 $10 $10 $10 800
$10
$6 600
$5
$5
400
$0 200
Source: Capital IQ
7. MASiV 2013: The M&A Silicon Valley Gathering
An indicator of the appetite for risk
Tech Transactions $1B+
Since 2003
64
50 49
39 38
36
33
28
19 19
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Capital IQ
9. MASiV 2013: The M&A Silicon Valley Gathering
Global Software and Internet Acquisition Activity – Last Ten Years
5,000 $300
3,892 $250
4,000 3,758
3,436
$200 # of
Transactions
3,000
2,524
$150
2,038 $ Value of
2,000 Announced
$100 Transactions
($B)
1,000
$50
‐ $‐
Source: Capital IQ
10. MASiV 2013: The M&A Silicon Valley Gathering
Top-25 Acquirers in Software – Announced Acquisitions, Last Five Years
Google 100+
IBM 36
Facebook 30
Oracle 30
Zynga 26
Nuance 20
Autodesk 19
salesforce.com 19
Vmware 19
Twitter 18
j2 Global 17
Microsoft 16
ADP 14
Synopsys 14
CA Technologies 12
Citrix Systems 12
eBay 12
VeriFone Systems 12
AOL 11
BMC Software 11
Quest Software 11
Yahoo! 11
Adobe Systems 10
SAP 10
Symantec 10
Source: Capital IQ
11. MASiV 2013: The M&A Silicon Valley Gathering
Breakdown of Software-Internet Transactions by Transaction size – Last five years
$500M ‐ $1 Billion
159 $100M ‐ $500M
1% 980
$1 Billion or More
155 3%
<1%
$100M or Less
10,156
31%
Undisclosed
21,063
65%
Source: Capital IQ
12. MASiV 2013: The M&A Silicon Valley Gathering
Valuations in M&A – Avg. Multiples of Revenue
10x
8x 7.8x
6x
5.4x 5.5x
4.7x
4.3x
4x 3.4x
2.8x
2.1x 2.1x
2x
1.0x
0x
2008 2009 2010 2011 2012
Top 50 Transaction Multiples ‐ All Tech
Top 50 Transaction Multiples ‐ Software and Internet
Source: Capital IQ
13. MASiV 2013: The M&A Silicon Valley Gathering
Thoughts on What’s Going On Around Us
Important Events of 2012 - Enterprise
• VMWare’s foray into software defined networking: $1.2B Nicira acquisition
• Salesforce’ $1 billion spend on its marketing cloud
• Dell’s push into software; $2.2 billion acquisition of Quest Software
• IBM’s $1.4 billion purchase of Kenexa
• SAP’s continued evolution into the cloud
• Oracle’s continued evolution into the cloud
• Citrix’s purchase of Zenprise in December
• HP’s $17 billion of write downs of bad acquisitions
• Microsoft’s $10 billion spending spree last 18 months; and new approach
• Google’s purchase of QuickOffice in June
14. MASiV 2013: The M&A Silicon Valley Gathering
Thoughts on What’s Going On Around Us
Looking Ahead to 2013 - Enterprise
• Major enterprise companies are still trying to reinvent themselves
• Google will continue to be the most important player in the M&A landscape
• Expect to see a lot of companies testing the market who are unable to raise
funding
• More cross‐border deals, especially with China
• Further activity in the Social Marketing Space
• We expect big data‐analytics and predictive‐analytics tools will be one of the
next big markets to consolidate
• The BYOD phenomenon will create additional activity in 2013
• Significant activity / consolidation expected in the Data Center Information
Market
15. MASiV 2013: The M&A Silicon Valley Gathering
Thoughts on What’s Going On Around Us
Important Events of 2012 - Consumer
• The Crash of Facebook, Zynga and Groupon
• Facebook’s acquisitions in mobile
• AOL’s sale of patents to Microsoft for $1.1 billion, and Yahoo’s sale of it’s
stake in Alibaba for $7.6 billion
• Zynga’s purchase of OMGPop for $183 million, and subsequent write-
down
• Traditional enterprise companies – Oracle, Salesforce, Intuit - buying their
way into social marketing / advertising companies
16. MASiV 2013: The M&A Silicon Valley Gathering
Thoughts on What’s Going On Around Us
Looking Ahead to 2013 - Consumer
• Google will continue to be the most important player in the M&A
landscape.
• Expect to see a lot of companies testing the market who are unable to
raise funding
• Expect more activity in mobile advertising
• An acquisition that should happen: EBay or Amazon buys Fab,
OneKingsLane, or similar
• An acquisition (or investment) that should happen: Microsoft should
acquire Dropbox