M&A and Investments in Data & Analytics – Market Update Q1 2019

M&A and Investments in Data & Analytics – Market Update Q1 2019

The quarterly Market Update on M&A and investments in the Data & Analytics software market is brought to you by Data Invest, the company marketplace, and BARC, the leading independent market analyst for Data & Analytics and other enterprise software segments.

The first quarter of the year 2019 showed a series of interesting transactions. Overall, we identified 13 corporate acquisitions and 14 investments in Data & Analytics companies that caught our attention. For M&A, this number represents no difference to last year, whereas the number of investments was down from 20 transactions in the first quarter last year.

Investments

It also appears that the total investment volume went down from 709 Mio. USD in Q1 2018 to 275.8 Mio. USD in Q1 2019. This decline is reasoned by the reduction in transaction numbers but investments also seem to have become smaller: In January 2018 we saw three big investments in Data Preparation vendor Trifacta, IoT PaaS provider C3 IoT and above all Cloud Data Warehouse vendor Snowflake. Also, AI for asset management provider Pagaya pocketed a big cash injection in February 2018. By now, the current year only held two major investments of 100 Mio. USD, one in the Data Governance solution provider Collibra and one of 60 Mio. USD in InfluxData, vendor of an IoT time series data platform. InfluxData had already received 35 Mio. USD from Sapphire Ventures in their Series C funding in February 2018. Collibra’s previous, and to this point largest funding round, was its Series D with a volume of 58 Mio. USD that also took place 13 months ago.

This leads to a different composition of Data and Analytics segment shares as depicted above. This development suggests that classic BI and Analytical Databases are becoming interesting again for investors after losing investment share over the past few years.

Mergers & Acquistions

Though the investment side was rather underwhelming in the first quarter of 2019, M&A transactions have been blooming. In early January, we saw the acquisition of a majority share of BOARD, provider of a cloud BI, CPM, and Advanced Analytics platform, by Private Equity investor Nordic Capital. The deal is a perfect example of a PE company entering the business software market and helping in international growth endeavors. In February, Data Management and Data Integration software provider Informatica bought AllSight, a market innovator in AI-enabled customer insight solutions, strengthening its offering for building up customer data hubs. Also, market consolidation in the BI sector proceeds with Marlin Equity backed LogiAnalytics’ acquisition of the JReport developer Jinfonet Software. Both vendors are active in the embedded BI solutions, but JReport can complement LogiAnalytics’ offering with stronger standard reporting capabilities.

Another major market trend is BI software providers acquiring vendors of Advanced Analytics or Data Management solutions to build end-to-end Data and Analytics platforms. A good example for this is Qlik. The company bought both Crunch Data in January for an undisclosed amount as well as Attunity in February for 560 Mio. USD. Crunch Data is specialized in Data Integration as well as Analytics and Data Visualization solutions, Attunity offers software for Data Integration and Big Data Management. With these two new additions to the Qlik family, the company should become able to provide their customers a more holistic BI and data management solution.

A third acquisition trend we observed over the past two years is big international enterprises and technology giants accommodating Analytics competencies by corporate purchases. Apple is one of these very active tech companies – in March they added Stamplay to their portfolio, a vendor of a platform for Data Integration Automation. It is rumored that Apple may use the technology in their financial payment products like Apple Pay.

If you liked our M&A and Investment Market Update for Q1 2019 remember to subscribe and get periodic updates of the market.

Follow & contact the authors of this market update for more information:

Maximilian Gluchowski, CEO of Data Invest

Dr. Carsten Bange, CEO of BARC

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Data Invest GmbH
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97080 Würzburg
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