The Knowledge Economy Global Buyers Report 2020

We are pleased to present the findings of our sixth annual survey of global strategic buyers and private equity investors acquiring businesses across the knowledge economy.

  • Strong propensity for larger deals, driven by expectations of robust levels of capital being available for M&A, particularly for private equity investors
  • A competitive M&A market is maintaining upward pressure on pricing and deal structures
  • A major driver of M&A is digital transformation, while buyers are also monitoring the potential headwinds from economic and political instability
  • Pricing and deal structures are dependent upon an assessment of a variety of quantitative and qualitative metrics discussed in the report

Each year we commission a comprehensive independent survey of the knowledge economy to deliver actionable M&A intelligence for business owners. This Knowledge Economy Global Buyers Report analyzes the findings of this survey and provides unique insights into current trends among strategic buyers and private equity investors that acquire knowledge-intensive businesses.

The following summarizes some of the key trends discussed in more detail in The Knowledge Economy Global Buyers Report 2020.

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November 2019: Knowledge Economy M&A and Equity Market Update

  • Major deals profiled include Tech Mahindra’s acquisition of BORN, DXC Technology’s purchase of Virtual Clarity and Accenture’s acquisition of Silveo.
  • Equiteq advised on five completed transactions over the month.
  • The Equiteq Knowledge Economy Share Price Index rose over the month.

Tech Mahindra continues its North American acquisition spree with its purchase of digital agency BORN.

Target: BORN Group is a US-headquartered digital contentand productionagency.

Buyer: Tech Mahindra is an India-headquartered provider of IT services and consulting.

Deal value: $95m

Deal insight: Tech Mahindra continues to build its North American digital capabilities with a string of acquisitions. Its purchase of BORN follows the Indian outsourcer’s acquisition of US-based design agency Mad*Pow in July and the purchase of Canadian IT consulting firm Objectwise Consulting in June. Tech Mahindra also recently invested in US-based software development company Altiostar. This significant deal flow from Tech Mahindra over 2019 reflects a notable uptick in activity as compared with the last five years.

The acquisitions of North American digital capabilities by Tech Mahindra reflects a shift for traditional IT outsourcing giants. Most are pivoting their service offering away from their shrinking legacy outsourcing core market and toward the growing digital and innovation consulting sectors. Major outsourcing players are using a blend of organic growth initiatives, early stage investments, and M&A to enable this. Some of the most active traditional outsourcing firms that are purchasing businesses in the digital and innovation space include Accenture, Cognizant and Capgemini, as well as other Indian outsourcing giants like Infosys and Wipro.

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