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December 31, 2018

Happy New Year 2019!

Happy new year

Happy New Year!

As you plan for 2019, if you are interested in further expansion of your capabilities and/or markets, let's connect and discuss industry updates and opportunities. 

P.S. Why Conduct an Industry Briefing blog post

Posted at 10:00 AM |

December 12, 2018

MarTech & CRM Services 2018 Deals Recap

The following list of M&A is for illustrative purposes only. Contact us for a detailed list of deal comparables for your company. 

MarTech & CRM Services Industry 2018 Deals.

  • 2018 – Adaptive Insights [JMI Equity acquired by Workday (NYSE: WDAY). Analytics for business planning acquired for $1.6B. before IPO.
  • 2018 – Qualtrics acquired by SAP for $8B.
  • 2018 – Main Street Hub Inc. [Vista Equity Partners] acquired by GoDaddy for $175m. Marketing community for SMBs.
  • 2018 – Direct Marketing Solutions Inc acquired by Main Street Capital Corp (secondary buyout). Agile marketing solutions.
  • 2018 - LiquidHub acquired by Cap Gemini ($200m revenues run-rate). Customer experience solutions.
  • 2018 – SAVO Group (sales enablement) acquired by Seismic (addon acquisition).
  • 2018 - Arvex Solutions (CX solutions) acquired by Norwest Equity Partners (secondary buyout).
  • 2018 – Alinean [Stonehenge] acquired by Mediafly. Undisclosed. B2B tools plus  Salesforce integration.
  • 2018 – Junxure, CRM consulting acquired by AdvisorEngine for $16m.
  • 2018 – Orchard Marketing acquired by Energo Group. Creative acquired by global marketing agency group. Acquired for $27M.
  • 2018 – Online Automotive Solutions acquired by New Media Investment Group. Auto marketing solutions provider. Acquired for $4M.
  • 2018 – XL Group acquired by AXA. Developer of extranets, portal for direct marketing campaigns for $15.3B in cash.
  • 2018 – Alexander Mann Solutions acquired by OMERS Private Equity. Sales revenue consulting acquired for $1.1B.
  • 2018 – Strategic Communication Services acquired by TTEC (NASD: TTEC). Contact center acquired for $4.4M.
  • 2018 – Web.com (NASD: WEB) acquired by Siris Capital Group. Leading provider of SMB online marketing acquired for $2b.
  • 2018 – WONGDOODY acquired by Infosys. Marketing services agency acquired by global Consulting & BPO for $75M.
  • 2018 – Mattersight acquired by NICE Systems. Analytics firm acquired by BPO WFM for $90M.
  • 2018 – Info Sys Management acquired by SWK Technologies. Reseller of SAGE and Acumatica solutions acquired for $1.7M.
  • 2018 – LogoMix acquired by Deluxe Corp (NYSE: DLUX). A marketing platform for SMBs.  Acquired for $43M in cash.
  • 2018 – Accompany acquired by Cisco. A database and intelligence company acquired for $270M.


MarTech & CRM Services Industry Deal Commentary.

  • Valuations remain flat for traditional agencies and VARs (<1X revenue price multiple for subscaled companies), while tech-enabled outsourcing solutions providers with long-term contracts attract 2X+ revenue-to-price multiples dependent upon the quality of the financials and business model.
  • 5 acquisitions in 2018 across the following: 
    • Acquisition of Business intelligence services such data management services, AdaptiveInsights, Tableau and other analytics partners and solution resellers 
    • Consolidation of industry centric marketing & lead generation firms based on their marketing platform, CRM, and BI capabilities 
    • Consolidation of ERP, PSA, and BI implementation capabilities
    • Consolidation of staffing and outsourcing
  • 2018 – More than 50 CRM implementation firms acquired over the past 36 months
  • 2017 – Proliferation of new digital sales models, digital ecosystems, marketplaces, & communities
  • 2017 – More than 500 service providers greater than $1m on cloud-SaaS modern solutions
  • 2016 – Vista Equity Partners, private equity firm, acquires Marketo, marketing automation software in in LBO for $1.8B.
  • 2016 – Netsuite acquired by Oracle for $9.3B.
  • 2015 – Proliferation of hundreds of venture funded industry solutions
  • 2014 – Hubspot IPO: NYSE: HUBS
  • 2013 – Launch of SaaS “FAO as a Service” , “Data as a Service”, “Marketing as a Service” , etc.
  • 2012 – Pardot acquired by ExactTarget for $95.5m. ExactTarget acquired by SalesForce.com NYSE: CRM in 2013 for $2.5B.
  • 2012 – Oracle buys marketing automation platform Eloqua for $871mbased on Eloqua $90m revenue run-rate.
  • 2010 - IBM acquires Unica (enterprise marketing management) for $480m.
  • 2006 - Hubspot launches.

Posted at 02:19 PM |

BPO Contact Center 2018 M&A Deals Recap

The following list of M&A is for illustrative purposes only. Contact us for a detailed list of deal comparables for your company. 

  • 2018 – Strategic Communication Services acquired by TTEC (NASD: TTEC). Contact center acquired for $4.4M.
  • 2018 – Teleperformance buys Intelnet from Blackstone for $1B. Indian BPO provider of outbound sales, analytic services and customer services.
  • 2018 – StarTek, Inc. (NYSE: SRT) business process outsourcing (BPO) acquires Aegis for $230M.
  • 2018 – Convergys acquires Synnex for $2.8B in cash/stock. Global BPO deal.

 

BPO Contact Center Industry Deal Commentary.

  • 293+ acquisitions since 2010.
  • 95 acquisitions in 2018 across BPO outsourcing such as:
    • Acquisition of Business intelligence services such data management services, AdaptiveInsights, Tableau and other analytics partners and solution resellers 
    • Consolidation of industry centric marketing & lead generation firms with MarTech, CRM, BI
    • Consolidation of ERP, PSA, and BI implementation capabilities
    • Consolidation of staffing and outsourcing
    • Acquisition of Tools for strategic CFOs, CXOs, and managers
  • Valuations remain flat for traditional BPO services, i.e. BPO valuation in 2018 similar to 2011, especially for outsourcing firms that are missing tech enabled platforms with a modern stack that includes apps, tools, chatbots, and workflow automation. Premium for BPO models that have gone beyond traditional "lift and shift" and traditional labor arbitrage nearshore/offshore. 

BPO Outsourcing Industry Milestones Recap Summary. 

  • 2018 – More than 50 CRM implementation firms acquired over the past 36 months
  • 2017 – Proliferation of new digital sales models, digital ecosystems, marketplaces, & communities
  • 2017 – More than 500 service providers greater than $1m on cloud-SaaS modern solutions
  • 2016 – Vista Equity Partners, private equity firm, acquires Marketo, marketing automation software in in LBO for $1.8B.
  • 2016 – Netsuite acquired by Oracle for $9.3B.
  • 2015 – Proliferation of hundreds of venture funded industry solutions
  • 2014 – Hubspot IPO: NYSE: HUBS
  • 2013 – Launch of SaaS “FAO as a Service” , “Data as a Service”, “Marketing as a Service” , etc.
  • 2012 – Pardot acquired by ExactTarget for $95.5m. ExactTarget acquired by SalesForce.com NYSE: CRM in 2013 for $2.5B.
  • 2012 – Oracle buys marketing automation platform Eloqua for $871m based on Eloqua $90m revenue run-rate.
  • 2010 - IBM acquires Unica (enterprise marketing management) for $480m.
  • 2006 - Hubspot launches.

 

Posted at 02:06 PM |

Backoffice outsourcing services 2018 M&A Deals Recap

Backoffice 2018 M&A Deals

  • 2018 – TrinTech “the last mile of Fiance solutions” [Vista Equity Partners] acquired by Summit Partners (growth equity recap).
  • 2018 – Corporate Finance Group, Inc. (CFGI)acquired by the Carlye Group (secondary buyout).
  • 2018 – Winshuttle acquired by STG – Symphony Technology Group (secondary buyout).
  • 2018 – SWC Technology Partners acquired by BDO USA LLP.
  • 2018 – TaskUs acquired by The Blackstone Group (secondary buyout)
  • 2018 – Accenture acquires DAZSI, DAZ Systems Inc ERP service provider.
  • 2018 – Moss Adams acquires Transacction Partners, a firm specailzied in outsourced finance and accounting services.
  • 2018 – BDO USA LLP accounting & consulting firm acquires Casterline Associates.
  • 2018 – BerganKDV acquires HSMC Orizon, NE CPA and Technology consulting firm.
  • 2018 – RSM US acquires Explore Consulting, Netsuite Consulting partner.
  • 2018 – Aprio LLP acquires HPC Accounting & TAX, tech driven cloud consulting firm.
  • 2018 – Wipfli LLP acquires NE accounting firm Macpage.
  • 2018 – Basware acquired by Verdane Capital Advisors. FAO acquired by PEG for $35M eruos.
  • 2018 – Quirius acquired by Becomex. FAO & Consulting firm acquired for $28M.
  • 2018 – Info Sys Management acquired by SWK Technologies. Reseller of SAGE and Acumatica solutions acquired for $1.7M.
  • 2018 – AcctTwo acquires Leap The Pond.

 

Backoffice Services Industry Commentary.

  • Continual movement of larger accounting firms acquiring non-CPA firms.

  • Deals driven by digital transformation, industry consolidation, shift to the cloud, demand for F&A optimization, spend efficiencies, and analytics.

  • Majority of service deals priced 80% to 100% of annual revenues, with outsourcing deals commanding a premium.

Posted at 12:56 PM |

HR Technology & HCM 2018 Deals Recap

HR Technology & HCM Deals 2018 commentary.

  • Valuations remain flat for HR services while HR tech valuations are highly dependent upon the quality of the platform and the underlying company economics.
  • On pace for more than a $1B funded globally to HRtech, with more than $250m funded to 84 HRtech companies with USA HQ.
  • 1 notable IPO in April 2018 –Ceridian HCM Holdings Inc (TSX:CDAY, NYSE:CDAY) - Tech company Ceridian raises $462 million through IPO.
  • More than 70 HRTech and related HCM M&A acquisitions.
  • M&A deals driven by holding companies and the following acquisition consolidation strategies:
    • Acquisition of TPAs by payroll and HROs
    • Acquisition of HR Consulting firms by Payroll and Insurance
    • Consolidation of payroll and staffing to create industry leaders
    • Shortage of certified HR technical and system implementation professionals

 

Notable HR Technology 2018 Deals Recap.

The following list of M&A is for illustrative purposes only. A list of deal comparables for your company available upon request.

  • 2018 – Adaptive Insights [JMI Equity acquired by Workday (NYSE: WDAY). Analytics for business planning acquired for $1.6B. before IPO.
  • 2018 – Qualtrics acquired by SAP for $8B.
  • 2018 – CEB Workforce Analytic division acquired by CultureIQ [Parker Gale Capital].
  • 2018 – Ultimate Software (4100 customers, 38m lives, 9.2k ee lives per customer) is acquiring French PeopleDoc ($50m raised, 1k customers, 4m ee lives) for $300m in cash and stock with $75m upfront, $50m 1 year later, and $175 in stock).
  • 2018 –Arcoro Inc. [Providence Equity Partners] acquires InfinityHR, ExakTime, BirddogHR. Undisclosed.
  • 2018 – Engae2Excel [multiple] acquired by Comvest Partners.
  • 2018 – Peoplefluent [Bedford Funding Corp] acquired by Learning technologies Group plc for $165m.
  • 2018 – Hcareers acquired by Virgil for $16.5m Hospitality career job board acquired by Career development and transition firm. 
  • 2018 – CEB Talent Assessment acquired by Exponent Private Equity. HR Assessment solutions.  Acquired for $400m via LBO.

  • 2018 – Glassdoor acquired by Recruit Holdings. Acquired for $1.2B in cash.


Notable HCM  Services 2018 Deals Recap.

The following list of M&A is for illustrative purposes only. A list of deal comparables for your company available upon request.

  • 2018 – Paychex acquires Oasis Outsourcing (multiple PEO acquisitions) for $1.2B.
  • 2018 – GPB Capital Holdings acquires PEO Surge Resources and MatrixOneSource.
  • 2018 – Asure Software acquires USA Payroll, Evolution reseller licensee acquired by Asure. Press Release. $3m revenue run-rate. 2018 – Asure Software (NASD: ASUR) ) closes on acqusition of Telepayroll, Pay Systems of America, Savers TPA, ISystems for $31m,[2].
  • 2018 – HireRight acquired by GIS (merger).
  • 2018 – Vettery acquired by The Adecco Group. Staffing & HR talent management company acquired for $100M.
  • 2018 – Equatex acquired by Computershare. Provider of compensation plan services acquired for $354.4M euros.

 

Additional HCM Services M&A and HRtech deal resources:

Posted at 12:38 PM |