Non-Tech Companies Fostering Technology Acquisitions
NEWSLETTER GMAP Tech Newsletter NEWSLETTER Tech Acquisitions by Non-Tech Companies NEWSLETTER GMAP Tech Non-Tech Companies Fostering Technology Acquisitions October 2020 www.globalma.comAugust 2020 www.globalma.com www.globalma.com Page | 1 NEWSLETTER GMAP Tech Newsletter Tech Acquisitions by Non-Tech Companies EXECUTIVE SUMMARY As innovation becomes key to business success, legacy firms are embarking on the inorganic growth path to leverage the latest technology 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 & Defence, Industrial, and BFSI industries. Companies in other industries are also active in acquiring tech firms to help reduce costs, competition, and disruption; expand to new geographies; and explore new market opportunities. However, a particularly popular technology to garner patrons across all industries has been artificial intelligence. With companies from almost all industries acquiring or investing in AI firms 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 companies fetch, non-tech companies 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.
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