BGL Insider Special Report

Non-Tech Companies Fostering Tech Acquisitions

Brown Gibbons Lang & Company (BGL), in conjunction with Global M&A Partners (GMAP), has released a new report on the shift of acquisition in the Technology industry by legacy companies in other industries.

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ANDREW K. PETRYK
Managing Director

TODD R. CASSIDY
Managing Director

The report covers global capital markets and mergers and acquisitions insights, trends and issues affecting the industry, and performance and valuation data.

As innovation becomes key to business success, legacy firms are embarking on the inorganic growth path to leverage the technology innovations from startups. And these incumbent organizations are benefiting from engaging with lean and agile startups that bring innovation faster with shorter turnaround periods. A major shift is that these companies have become more comfortable with technology, trying to recast themselves as tech companies as seen in the technology-intensive and acquisitive Aerospace & Defense, Industrial, and BFSI industries.

Companies in other industries are also active in tech acquisition to help reduce costs, competition, and disruption; expand to new geographies; and explore new market opportunities.

A particularly popular technology to garner patrons across all industries has been artificial intelligence (AI). With companies from almost all industries acquiring or investing in AI companies to capitalize, enhance or expand their capabilities, while also adding to their skilled talent pool; this tech has had a major impact on deal-making. Other major technologies drawing attractive valuations from a diverse range of acquirers include analytics, automation, cloud, cybersecurity, and digital operations/management platforms.

Though, initially not comfortable with the high prices that many tech and AI companies fetch, companies outside of that sector have now become much more fluent in the language of tech company valuations; leading to some notable large-ticket transactions in the history of deal-making.

BGL is a member of GMAP, a global partnership of independent investment banks structured to provide clients with unparalleled sector-focused access to strategic relationships, investors, and opportunities globally. With partner offices in more than 30 countries, the partnership drives premium value for our clients by ensuring the highest quality and most relevant potential global buyers are involved.

Bridging cultural, language, and stylistic gaps becomes extremely important in order to drive value in a timely fashion. The BGL & GMAP team comprises dedicated M&A professionals with representatives from 18 countries, including those with the highest Packaging activity in the world including the U.S., U.K., Germany, France, China, India, and Brazil.

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