1Q 2013 Mergers & Acquisitions

H.J. Heinz
H.J. Heinz

Two seemingly conflicting headlines:

  • Q1 Venture Capital Spending and Number of Deals Down, M&A Activity Drops 44 percent and Pre-Money Valuations Plummet[1]
  • Health Care IT Venture Capital Deals Double in Q12013[2]

It’s not new news that healthcare deals are in vogue, and the rest of technology, outside of web/cloud and mobile-related are lagging.  Big Iron and Little Iron, as in PC’s and laptops are down.  Tiny Iron, as in mobile devices and applications are areas of focus.

The largest deals M&A over all was H.J. Heinz, being acquired by Warren Buffett for $28 billion, followed closely by the proposed Dell MBO at $24.4 billion.  The buyout of Dell by Michael Dell and Silver Lake seems to be on track, after Blackstone dropped out due to the plummeting health of the PC industry.  Silver Lake has to go forward, inspite of the breaking news of the PC downturn, as Silver Lake would incur a $750 million penalty should they back out of the deal; we see the deal marching forward, regardless.  Of course banks still have to finance the deal:  Barclays Plc, Bank of America Corp., RBC and others.  Lastly, Scientific Games is to buy WMS Industries for $1.5 billion.

We are sure to see continued activity in the second quarter, with noise being generated by Compuware (CPWR), Anaren (ANEN) Advent Software, Inc. (ADVC) and BMC (BMC).  Stay tuned

Healthcare companies continue to round out their businesses with strategic alliances and, such as MacroGenics and Gilead’s (GILD) $1.1 billion deal and Anthenahealth (ATHN) acquisition of Epocrates (a mobile app).  For a diversification into healthcare, we have Lexmark International’s (LXK) acquisition of Acuo Technologies, which provides data migration solutions for clinical content.

What do you find exciting about these acquisitions and the directions of business?  What do you find unsettling?


[1] TechCrunch.com April 17, 2013

[2] eWeek.com