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Global technology M&A updateJanuary–March 2015

Issue 27

Will record-setting M&A ever slow?

2 Global technology M&A | January–March 2015

Deal drivers

The internet of things (IoT) and healthcare IT (HIT) were the biggest deal-valuedrivers of 1Q15, followed by cybersecurity,financial and payment technologies, smartmobility and the cloud.

• IoT accelerates cross-industry technologyblur by adding network-enabled digital sensors to other industries’ everyday products.

• Many deals involved two, three or more of these key technologies, as global technology companies continued to use M&A to stack together strategic solutions.n

Deal size Skyrocketing big-ticket deal values masked a decline in midsize deals (from$100 million up to $1 billion), as 1Q15 dealmaking energy skewed toward transformative transactions.

• Deals above $1 billion nearly tripled in aggregate value over 4Q14 to $57.4 billion(+28% YOY).

• Mid-size deals fell to $16.3 billion, 13% down from the 2014 quarterly average ($18.8 billion).

• Small deals (below $100 million) fell 8% YOY but at $3.5 billion were slightly ahead of the 2014 quarterly average ($3.4 billion). n

*All values in this report are of disclosed-value deals only and all dollar references are in US$ unless otherwise indicated.

Highlights2014 was a blockbuster year for globaltechnology M&A — but based on 1Q15 performance, 2015 will be even bigger.Technology-enabled digital transformationsdisrupting multiple industries propelled1Q15 to the second-largest quarterly aggregate value in tech M&A history. Suchdeals drove 1Q15 strategic dealmaking, by corporate technology and non-technologybuyers alike, further blurring boundariesbetween tech and other industries.

• 1Q15 aggregate value* of disclosed-value deals hit $77.1 billion, up 16% year-over-year (YOY) and 72% sequentially. Only 1Q00 was higher — due to one megadeal.

• Quarterly deal volume climbed to 981 deals. That’s up 29% YOY, 2% sequentially and a fifth consecutive post-dotcom-bubble quarterly record.

• Big-ticket corporate deals returned after a one-quarter “breather,” and non-technology buyers’ value jumped again, after a strong 4Q14, to $19.5 billion (25% aggregate value). But private equity (PE) volume and value declined. In all, there were 15 deals above $1 billion.

• Cross-border (CB) aggregate deal value more than doubled YOY and jumped 59% sequentially; it captured a 42% share of total quarterly value.n

02Highlights

03Tech M&A records just keep on coming

11Look ahead

12Regional snapshots

22Methodology

23Source notes

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Figure 1: A directional view of select 1Q15 deal-driving trends

Note: average deal value is based on the value of disclosed-value deals, while number of deals includes both disclosed-value and undisclosed-value deals. Bubble size is based on each deal-driving trend’s share of total quarterly value. Source: EY analysis of The 451 Group Research M&A KnowledgeBase, accessed 6 April 2015.

$1,800

$800

$400

$200

$600

Ave

rage

dea

l val

ue (

$m

)

Number of deals noted

50 100 150 200 250 300 3500

Security

Health care IT

Cloud/SaaS

Smart mobility

IoT

Gaming

Payment and financial technologiesBig data

Advertising and marketing technologies

Note: percentages may not total to 100% due to rounding.

Source: EY analysis of The 451 Group Research M&A KnowledgeBase, accessed 6 April 2015.

1Q14: $66.6b

1Q15: $77.1b

74%10%11%

68%11%16%

4%

6%

<$100m $100m–$500m $500m–$1b >$1b

Figure 2: Aggregate value of announced deals by deal size, 1Q15 vs. 1Q14

3Global technology M&A | January–March 2015

Global technologyM&A updateTech M&A records just keep on comingDisruptive technology innovation and other industries embracing technology-enabled digital transformation catapulted global technology M&A to its second-largest-ever aggregate value in 1Q15. Both disruptor and disrupted companiesturned to M&A to keep up with the pace of change in technology, and non-techcompanies acquired technology targets to keep up with — or drive — digitalinnovation in their own industries.

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“The ‘blur’ between tech and non-tech that we see in 1Q15’s record-setting technology M&A will accelerate. The internet of things shows why: it drives the integration of digital sensors, processing, connectivity and security into virtually every industry’s products. And that pushes tech companies to deliver more comprehensive solutions — increasing blur and spurring more M&A.”

Jeff LiuGlobal Technology Industry LeaderTransaction Advisory ServicesEY

$66,579m $44,872m $77,141m

4Q14 1Q151Q14

PE Corporate

Average value(Corporate and PE)

Corporate average value

PE average value

$282m

$304m

$448m

$140m

$173m

$471m

$379m$380m

$386m

Figure 3: Total and average deal values for deals with disclosed values1Q14–1Q15


758

959 981

4Q14 1Q151Q14

PE Corporate

688 883 924

70

76 57

Figure 4: Total number of all announced deals 1Q14–1Q15

Buyers seek growth, scale and end-to-end solutions in a context of continuous disruption

As the era of cloud solutions enables customers to increasingly hide complex technologyinfrastructure from their view,1 technology companies continued to build end-to-endsolutions via M&A in 1Q15.

4

• Perhaps more than ever before, technology companies across the spectrum from those leading disruption to those being disrupted used M&A to stand in for R&D. It’s little coincidence that start-up venture funding also hit a 15-year high of $15.7 billion in 1Q15, the highest level since the fourth quarter of 2000.2

• The growing need for — and concern over — cybersecurity drove increasing deal volumes and values, as did the IoT and HIT, big data analytics and payment and financial technologies — including a kind of M&A-enabled “arms race” in mobile payment technology.

• From semiconductor companies to cloud-related data center services to internet travel sites, buyers sought increasing scale to achieve cost synergies, support large multinational customers or gain attendant network effects.

• Cross-border (CB) buyers continued to seek growth by acquiring targets that provide geographic expansion, especially in the relatively strong US economy.

• Gaming and advertising and marketing — which drove significant M&A value in 2014 — were sidelined as value-drivers in 1Q15 even though they increased in deal volume over their 2014 quarterly averages. n

*Post-dotcom-bubble (only year 2000 higher)

Up1Q15

981 deals= fifth consecutive quarterlydeal volume record*

Global technology M&A | January–March 2015


Disclosedvalue ($m) Deal type

Multiple of TTM EV/ revenue

Multiple ofTTM EV/EBITDA

Premium offeredAnnounced

UnitedHealth Group Inc.

NXP Semiconductors NV

Harris Corporation

Hewlett-Packard Company

CommScope Holding Company, Inc.

Canon Inc.

GO Scale Capital

Verisk Analytics, Inc.

SS&C Technologies Holdings, Inc.

Bain Capital LLC

TeleCity Group plc

Brother Industries, Ltd.

Expedia, Inc.

Davis + Henderson Corporation

Lexmark International Inc.

Catamaran Corporation

Freescale Semiconductor Ltd.

Exelis, Inc.

Aruba Networks, Inc.

To acquire telecom, enterprise and wireless

business assets of TE Connectivity Ltd.

Axis Communications AB

To acquire LED components and automotive

lighting business of Royal Philips Electronics

Wood Mackenzie

Advent Software, Inc.

Blue Coat Systems, Inc.

Interxion Holding NV

Domino Printing Sciences plc

Orbitz Worldwide, Inc.

Fundtech Ltd.

Kofax Limited

$14,227 30 Mar Corporate 0.6x 16.5x 25%

$11,815 2 Mar Corporate 4.0x 16.2x 32%

$4,750 6 Feb Corporate 1.5x 9.3x 42%

$3,000 2 Mar Corporate 3.7x 29.2x 17%

$3,000 28 Jan Corporate 1.6x 10.0x N/A

$2,804 10 Feb Corporate 4.0x 30.1x 62%

$2,800 31 Mar PE 1.4x

N/A

N/A

$2,780 10 Mar Corporate 7.9x 16.7x N/A

$2,505 2 Feb Corporate 6.8x 25.6x 47%

$2,400 10 Mar PE 3.7x 12.0x N/A

$2,155 9 Mar Corporate 6.3x 15.3x 9%

$1,542 11 Mar Corporate 2.9x 16.1x 32%

$1,380 12 Feb Corporate 1.8x 11.9x 32%

$1,250 30 Mar Corporate 5.0x 22.2x N/A

$1,014 24 Mar Corporate 3.2x 38.2x 61%

Buyer Target

Figure 5: Global top 15 deals, 1Q15We expanded the top 10 deals to 15 in this report in order to accommodate all 15 deals above $1 billion.

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1Q15 by the numbers

As in 2014, it was corporate buyers that drove new records in1Q15; PE volume and value declined. But non-technology buyerswere the decisive factor, as technology company aggregate valuewas slightly down YOY.

• Aggregate value of $77.1 billion set a new post-dotcom-bubble record, besting the $73.7 billion level set in 3Q14. Of note, only the first quarter of 2000 was higher — and only due to one $160 billion deal, AOL—Time Warner. Without that deal, the highest aggregate value of the dotcom era was $73 billion in 3Q00 — which was topped in two of the last three quarters.

• 1Q15 deal volume hit a fifth consecutive post-dotcom-bubble record of 981 deals (see Figure 6, below).

• Breaking out the corporate numbers in Figure 6 between tech and non-tech, we see corporate tech buyers fell 1% to $49.9 billion in 1Q15 from $50.4 billion in 1Q14. Non-tech buyers’ aggregate value was only $3.2 billion in 1Q14, soaring more than 500% to $19.5 billion in 1Q15. n

Deal value rising$77.1b

1Q15+16% YOY+72% sequentially

Global technology M&A | January–March 2015

Figure 6: Global technology transaction scorecard (corporate and PE), 1Q15

Deals announced 1Q14 Sequential % change 1Q15

688 924 5% ▲ 34% ▲

190 183 –21% ▼ –4% ▼

$53,574 $69,422 113% ▲ 30% ▲

$282 $379 171% ▲ 34% ▲

70 57 –25% ▼ –19% ▼

29 20 –23% ▼ –31% ▼

$13,005 $7,718 –37% ▼ –41% ▼

$448 $386 –18% ▼ –14% ▼

Corporate and PE

Number of deals announced

Number of deals with disclosed values

Total value of deals with disclosed values ($m)

Average value of deals with disclosed values ($m)

758 981 2% ▲ 29% ▲

219 203 –22% ▼ –7% ▼

$66,579 $77,141 72% ▲ 16% ▲

$304 $380 120% ▲ 25% ▲

PE





Corporate





YOY % change

Note: numbers may not add to totals due to rounding.


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Largest 1Q15 deals exemplify cross-industry blur,HIT and IoT

By themselves, 1Q15’s two largest deals totaled $26 billion in M&A value. They’re also the leading edges of multiple disruptivetechnology trends, including cross-industry blur (117 deals hadnon-technology buyers), HIT (approximately 60 deals) and IoT(nearly 40 deals). Many deals involved elements of all threetrends. Deals like these further blur the boundaries betweentechnology and other industries and accelerate those industries’transformation by digital innovation.

• The biggest 1Q15 deal by dollar value ($14.2 billion) had a non-technology buyer: health insurer UnitedHealth Group (see Figure 5, page 4, and Americas snapshot, page 12). Fifteen of the HIT deals we noted (or about 25%) had non-tech buyers, approximately double the 12% of global volume acquired by non-tech buyers.

• Including the deal above, HIT-driven aggregate value in 1Q15 was $15.5 billion, which was twice the full-year 2014 disclosed HIT value of $7.6 billion. 1Q15 HIT deal volume was about 40% ahead of the 2014 quarterly average.

• Similarly, non-tech buyers acquired about a quarter (9 deals) of IoT targets we noted — but that was second by one deal to semiconductor buyers’ 10 IoT deals.

• In fact, the second 1Q15 megadeal was NXP Semiconductors’ $11.8 billion deal for Freescale Semiconductor. The companies said driving IoT market growth was a strategic purpose of the deal, especially relative to connected vehicles and IoT security.3

Other IoT-driven deals with semiconductor buyers included ARM Ltd., Intel Corporation, Mentor Graphics Corporation, Microsemi Corporation, Semtech Corporation and Silicon Laboratories Inc.

• In all, we noted $14.3 billion of IoT disclosed value in 1Q15, eclipsing the $13 billion for all of 2014. Semiconductor targets represented 86% ($12.3 billion) of IoT disclosed value, which was also 88% of semiconductor targets’ disclosed value.

• IoT volume accelerated in 1Q15: deal volume of nearly 40 deals compares with just under 60 for all of 2014 — or roughly three times the 2014 quarterly average.


Figure 7: Global technology transactions value flow by sector, 1Q15 vs. 4Q14

4Q14

Buyer $44.9b

Target $44.9b

CE 1%

CPE4%

CE18%

Semiconductors17%

IT services24%

Internet8%

Software/SaaS27%

CPE7%

Internet 3%

Software/SaaS15%

Non-tech21%

Semiconductors17%

IT services9%

PE27%

CE = Communications equipment CPE = Computers, peripherals and electronics



1Q15

Buyer $77.1b

Target $77.1b

CE11%

Non-tech7%

CPE11%

Semiconductors18%

IT services29%

Internet10%

Software/SaaS13%

CPE13%

Internet 5%

CE12%

Software/SaaS10%

Non-tech25%

Semiconductors18%

IT services7%

PE10%

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Source: EY analysis of Capital IQ data, accessed 28 April 2015.

5%

3%4%

4%

Top 10

Next 15

$731$755

$788

1Q13 2Q13 3Q13 4Q13

2%

2% 5%4%

–3%

–1%

–1%

–1%

$802 $793

$266$253 $276 $267

2Q141Q14

$489$478$512 $535

$263

$530

3%

5%

0%

$817

$263

$554

3Q14 4Q14 1Q15

2% 2%

2% 3%

2% –1%

$830

$267

$563

$844$872

$264

$580 4%

3%

2% $270

$602

Figure 8: Aggregate cash and short- and long-term investments for the top 25 technology companies, 1Q13–1Q15 ($b)

• Two other IoT deals by a non-tech buyer combined HIT and analytics, exemplifying the kind of blur we expect is coming to all industries as information becomes a larger and larger component of all products’ value. Apparel maker Under Armour is buying two fitness-tracking web-and-mobile apps (MyFitnessPal for $475 million; Endomondo ApS, $85 million). Both targets capture data from wearable devices, include social-sharing functions and aim to use data analysis to motivate athletes and fitness-minded individuals to increase performance.4

• The sharp 1Q15 rise of blur, HIT and IoT deals skewed the typical pattern of transaction value flow among technology industry segments (Figure 7, page 6). Software/SaaS is almost always the top target in terms of both volume and value. In 1Q15, however, software fell to third in target value behind IT services and semiconductors. It remained far-and-away the volume leader, with 47% of global deals. n

Non-tech buying techexemplifies the “blur”we see coming.

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Cybersecurity dealmaking accelerates

First, the cloud circumvented traditional corporate perimeters,leading to new multifaceted security challenges. Now, IoT is addingsensors and microprocessors to most industries’ everyday productsand networking them together to share and propagate their data,thus exposing whole new industries to increasing cybersecurity risk.At the same time, hacker breaches are driving increasedcybersecurity awareness via news headlines — and together theseforces are accelerating M&A that targets security technologies.

• Security-driven deals included a range of technologies: enterprise firewall, antivirus, encryption and intrusion detection; video surveillance for businesses, governments and homes; content and intellectual property (IP) protection, such as “containerization”; and machine-to-machine (M2M) communications protection for IoT networks. Roughly half the security deals included a cloud/SaaS element.

• We counted more than five dozen security-driven deals in 1Q15, about 31% more than the 2014 quarterly average. At $9.6 billion, 1Q15 security-related aggregate value was within striking distance of the $10.3 billion noted for all of 2014.

• Three security deals made the top 15 list of deals above $1 billion (Figure 5, page 4): Bain–Blue Coat Systems, Canon–Axis and HP–Aruba. In order, the targets provide enterprise, web and mobile security software/SaaS; networked video surveillance; and equipment and software for secure mobile networks.

• About a half-dozen security technology buyers were non-tech companies, including a telecommunications carrier and home security and financial services firms.

• Mobile chip designer ARM supported a move into IoT devices by acquiring an embedded security software firm for $2 million.

• Tech companies share cybersecurity concerns: EY’s May 2015 Capital Confidence Barometer (CCB) survey found that 54% of the 197 responding technology executives say they are proactively increasing measures to protect their M&A process from breaches. Another 32% are more concerned about security issues involving their targets than they were a year ago.

Digital mobile wallet race helps drive financial technology deals

A typical mix of diverse payments and financial services technologieswas targeted in 1Q15, driving volume to more than 90 deals(roughly 60% ahead of the 2014 quarterly average). We noted $6 billion in disclosed-value, roughly flat with last year’s quarterlyaverage. But there also were three high-profile digital mobile walletdeals with undisclosed values, as competition for consumers’mobile wallet infrastructure begins in earnest.

• eBay Inc.’s PayPal unit, Google Inc. and Samsung Electronics Co. Ltd. targeted the digital mobile wallet deals.

• PayPal acquired Paydiant Inc., whose technologies include mobile payment applications and application programming interfaces (APIs). Samsung acquired LoopPay Inc., whose technology is similar but reportedly enables smartphone wallets to work with existing merchant credit-card readers.5

• The Google deal is different. Google acquired assets of Softcard, a joint venture of AT&T Mobility, T-Mobile US Inc. and Verizon Wireless formerly known as the ISIS Mobile Wallet (but renamed after the terrorist group surfaced). The Softcard app is being terminated, and the three US mobile carriers will point users to Google Wallet and pre-install that app on Android phones.6

• Meanwhile, the deals that drove disclosed value in payments and financial services involved investment portfolio management software/SaaS and payment transaction processing services. Two such deals made the top 15 list, totaling $3.8 billion (see Americas snapshot, page 12).

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Data center, internet and semiconductor companies pursue scale

While technology M&A buyers sought scale across the board, datacenter services, internet and semiconductor buyers particularlystood out.

• As is usual, 1Q15 included many data center consolidation deals, often including non-technology buyers such as telecommunications carriers. But this time, two deals ended up reshaping the European data center market by creating new number two and three players — one of which, Japan’s NTT Communications, quadrupled its European presence (see Europe, Middle East and Africa (EMEA) snapshot, page 16).

• Expedia’s $1.4 billion deal for Orbitz (see Figure 5, page 4) was the largest of many scale-building internet e-commerce site deals. Besides Orbitz, for example, Expedia acquired Travelocity.com from Sabre Corporation for $280 million. Competing travel site TripAdvisor Inc. acquired three restaurant reservation services (two in Italy and another in the Netherlands) and a mobile travel journal app. And online food delivery service GrubHub Inc. acquired two smaller regional US online food delivery services.

• In semiconductors, the NXP-Freescale deal was the latest in a multi-year string of consolidation deals, large and small. Among other semiconductor deals were two PE-backed deals that continued China’s efforts in recent quarters to expand its semiconductor industry (see Asia-Pacific and Japan (APJ) snapshot, page 14).

M&A as R&D

While M&A as R&D is not a new or uncommon theme, the dealsseemed to jump out at us during our analysis of 1Q15 technologyM&A data. In particular, we noted many Israeli targets among themore interesting deals and discovered a small but growing trendtargeting that country’s start-ups.

• Amazon.com Inc. did two interesting “lab” deals for data center technologies: Israel-based Annapurna Labs offers chip-design technology that could create storage cost-performance advantages for Amazon Web Services (AWS), the company’s cloud services arm. And 2lemetry Inc. brings M2M networking and analysis that could enable AWS-based cloud apps to respond to IoT-driven triggers.7

• Infosys Technologies Limited also acquired data center technology, for automating the management and upgrades of complex cloud-based applications. Infosys’ CEO said a key benefit of the $200 million deal for Panaya Inc., an Israel-based target, is gaining access to Israel’s technology ecosystem.8

• In all, 12 CB deals targeted Israeli companies, compared with 27 in full-year 2014 and 21 in 2013. In addition to Amazon.com and Infosys, buyers included Check Point Software Technologies Ltd., Intuit Inc., Microsoft (two deals) and PayPal.

Technology M&A buyers pursue consolidation for scale and strategicgrowth, all in the context of ongoing disruptive digital transformation.

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PE dealmaking targets security and financial services

PE dealmaking started the year slow in 1Q15, with all transactionscorecard metrics declining YOY and sequentially (see Figure 6,page 5). We expect the “lull” to be temporary, as there remainmany disrupted companies “in the crosshairs” of disruptivetechnologies — and activist investors.

• At $7.7 billion, PE aggregate value was 22% below its 2014 average of approximately $10 billion per quarter. Only two made it into the list of top 15 deals above $1 billion.

• PE volume (57 deals) was 19% below the 2014 average.

• We saw nine deals targeting payments and financial services technologies, more than any other technology except cloud (which is more broadly applicable). There were also four HIT targets and three education targets, along with the usual array of industry-specific software/SaaS.

• Among the highest-value PE deals was one in security. Bain acquired Blue Coat Systems ($2.4 billion), saying “Our thesis is that cybersecurity is the place to be.”9 It plans further acquisitions to broaden its end-to-end multifaceted security solutions, and then to eventually go public.10

“Hidden gems” propel divestiture growth

One company’s orphaned asset clearly can be another’s “hiddengem” when it finds the right strategic fit. That’s why divestiture dealscontinue to accelerate in 1Q15, as many companies review and coredown their business portfolios, while others seek M&A to flesh outtheir end-to-end solutions.

• Divestiture deals fell just shy of 100 in 1Q15, after averaging roughly 75 deals per quarter in 2014 — but increasing steadily, if slightly, every quarter.

• 1Q15’s top-valued divestitures were that of TE Connectivity’s networking assets ($3 billion) and Royal Philips Electronics’ LED components business ($2.8 billion) (see Figure 5, page 4).

• Expedia added scale by acquiring Sabre’s Travelocity.com travel reservation business, as noted on page 9.

• Ericsson Inc. expanded its IT services operations for telecommunications carriers in China by acquiring (for an undisclosed value) the Chinese IT services business divested by Sunrise Technology.

1Q15 featured a return of big-ticketcorporate deals and an overall decline inPE deals. Security and financial servicesdeals were the bright spot for PE.

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Look aheadBet on continued robust dealmakingWill record-setting technology M&A ever slow? Not soon, by our forecast.

1Q15 set new post-dotcom-bubble records for quarterly value and volume, and as we werepreparing this report, several more multibillion-dollar technology M&A deals were kicking offthe second quarter.

Non-technology buyers were the wild card in 1Q15: they usually start slow and buildthroughout the year, but they were a major factor in 2015’s first quarter. It’s a sign the “blur” we’ve talked about for years is taking off, fueled by IoT and digital transformation and enabled by universal cloud adoption and a growing need to add cybersecurity to a widerange of products and services. We see this setting the stage for another blockbuster year in 2015 for tech M&A.

Our view is supported by EY’s May 2015 edition of our twice-yearly Capital ConfidenceBarometer (CCB) survey of 197 technology executives, which is becoming availablealongside this report. More tech executives (79% of respondents) expect the globaleconomy to improve than did six months ago (52%) or this time last year (61%). More to the point, 98% expect tech M&A to remain stable (38%) or improve (60%). That’s about the same as six months ago — and 1Q15’s record-setting volume and value levelsprove they meant it.

In this context, we again suggest technology executives test their organizations against these questions:

• Are we positioned to offer customers true solutions, or even “answers,” as opposed to just a point offering in the overall technology stack?

• Is there a “hidden gem” among our business units and other departments with the potential to drive greater value?

• Has disruptive technology placed our organization “in the crosshairs” of some upstart companies, or of activist investors?

• Are we doing all we can to provide comprehensive security in our offerings?


“Given the strong first-quarter start, and the momentum we continue to see around disruptive innovation in Q2, I expect 2015 will be another blockbuster year for technology M&A.” Jeff Liu Global Technology Industry Leader Transaction Advisory Services EY

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Report will be available on ey.com/technology on 19 May 2015.

M&A surge shows no sign of stopping any time soonLooking beyond the 1Q15 records set in this report, EY’s Technology Capital ConfidenceBarometer shows technology executives’ high expectations for even more dealmaking thisyear in an improving global economy. At the same time, dealmakers are confronting two ofthe biggest challenges yet to arise in this era of digital transformation: disruptive innovationand cybersecurity. Key findings include:

• 79% of survey respondents see the global economy improving• 58% expect to pursue acquisitions in the next 12 months• 78% of their M&A activity will be innovative investment (shifting the scope of the business)• 54% of respondents are proactively guarding against cyber breaches in their M&A process


Even though volume in the Americas grew slower than in the other regions, Americas buyers still accounted for two-thirds(67%) of global transactions — and an even higher portion of IoT, security, HIT, payments and financial technology,cloud/SaaS and analytics deals. Several large HIT and IoT deals typify blurring between tech and non-tech industries. Aggregate value grew 1% YOY, as growth in corporate deals only slightly outweighed a decline in PE.

• Americas buyers increased volume 20% YOY, compared with 41%in EMEA and 80% in APJ. Slower Americas’ volume growth nowis a long-term trend: 1Q15’s 67% of global volume compareswith 68% in full-year 2014 and 72% in 2013. But Americas buyers captured 10 of the 15 deals valued above $1 billion.

• Highlighting tech and non-tech blur, more than a third (36%) of Americas aggregate value was acquired by non-tech companies($17.8 billion, or 91% of all non-tech-buyer disclosed value). At 70 deals, Americas non-tech buyer volume was 60% of theglobal total; 60 deals had US buyers and the remaining 10 wereCanadian.

• 1Q15’s largest deal was HIT-driven with a non-tech Americasbuyer. Health insurer UnitedHealth is acquiring pharmacy-benefitsmanagement technology and services company Catamaran.UnitedHealth plans to combine Catamaran’s technology platformwith its existing data and analytics capabilities.1 Americas buyers accounted for 80% of global HIT volume and 98% of disclosed value.

• The largest IoT deal with an Americas buyer was one of non-techaudio company Harman International’s two deals to expand connected car and mobile device initiatives. Harman is acquiringSymphony Teleca Corporation ($780 million), which is part ofthe Google Open Automotive Alliance, and Red Bend Software($170 million), which specializes in automated over-the-airsoftware updates.2

• Americas buyers accounted for 65% of global mobility deals, 77%of cloud/SaaS deals and 83% of security deals. One transactionthat combined all three was HP’s deal for Aruba, which specializesin equipment and software for secure mobile networks.

• Americas buyers accounted for 81% of global big data analyticsdeals, including the largest: Verisk Analytics–Wood Mackenzie.

• 73% of global payments and financial systems deal value was acquired by Americas buyers, including the largest transaction:SS&C–Advent ($2.5 billion). Advent provides investment management, reporting and compliance software. The second-largest financial technology deal also was the largest by a Canadian buyer: Davis + Henderson’s $1.3 billion deal for USpayment-processing firm Fundtech.

• Growing global demand for broadband and other high-speeddata services — both for telecom carrier networks and enterprisedata centers — drove CommScope’s $3 billion deal for assets acquired from TE Connectivity. n

“Non-technology companies across the Americas are buying technologies to strategically drive their respective industries’ digital transformations — these companies epitomize the blurring between tech and non-tech.”

David Hedley US Technology M&A Leader Ernst & Young Capital Advisors, LLC*

Americas buyers accounted for 73% of global IoT deals.

73%

*Ernst & Young Capital Advisors, LLC is a broker-dealer affiliate of Ernst & Young LLPand a member of FINRA (www.finra.org) providing sector-specific advice on M&A,capital markets and capital restructuring transactions.

Regional snapshot

Americas

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Figure 9: Top five Americas deals (corporate and PE), 1Q15

Figure 10: Americas transactions scorecard, 1Q15

Disclosed Premium Buyer Target value ($m) Announced Deal type offered

UnitedHealth Group Inc.

Harris Corporation

Hewlett-Packard Company

CommScope Holding Company, Inc.

Verisk Analytics, Inc.

Catamaran Corporation

Exelis, Inc.

Aruba Networks, Inc.

To acquire telecom, enterprise and wireless business

assets of TE Connectivity Ltd.

Wood Mackenzie

$14,227 30 Mar Corporate 25%

$4,750 6 Feb Corporate 42%


$3,000 28 Jan Corporate N/A

$2,780 10 Mar Corporate N/A


497 617 10% ▲ 24% ▲

115 103 –19% ▼ –10% ▼

$38,830 $45,555 139% ▲ 17% ▲

$338 $442 195% ▲ 31% ▲

48 39 –25% ▼ –19% ▼

19 9 –31% ▼ –53% ▼

$9,585 $3,527 –58% ▼ –63% ▼

$504 $392 –39% ▼ –22% ▼

Corporate and PE





545 656 7% ▲ 20% ▲

134 112 -20% ▼ -16% ▼

$48,415 $49,081 79% ▲ 1% ▲

$361 $438 123% ▲ 21% ▲

PE





Corporate





YOY % change



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Regional snapshot

Asia-Pacific* and Japan (APJ)Volume in APJ rose faster than in any other region, mostly due to M&A activity in Australia, India and Japan. The largest dealstargeted European and US companies, as Japanese firms sought growth through diversification and China’s semiconductorindustry expansion continued. Mobility, cloud/SaaS, online gaming, and advertising and marketing drove many deals.

• APJ long-term volume growth continued: it rose for the fifth sequential quarter and 80% YOY to 115 deals. APJ represented12% of global volume, compared with 10% in full-year 2014 and7% in 2013. Value rose sequentially for the third successivequarter but fell 27% YOY compared with an exceptional 1Q14.1

• 94% of value and 35% of volume acquired by APJ buyers was inthe EMEA and Americas regions, primarily due to big-ticket USand European acquisitions by Japanese and Chinese companies.Japan’s buyers accounted for 60% of APJ value (including threeof the top five deals) and 20% of volume.

• China’s ongoing effort to expand its semiconductor industry was exemplified by the PE acquisition of Integrated Silicon Solution, a US maker of specialized memory chips.2 In addition, a PE group backed by both Chinese and US venture firms acquired a semiconductor business from Royal Philips Electronics (see Figure 11).

• Security-related deals included Canon’s diversification into networked video surveillance via acquisition of Sweden’s AxisCommunications. In Japan’s second top five deal, Brother Industries sought to expand its industrial printing capabilities byacquiring UK-based Domino Printing Sciences. Domino makesequipment to print bar codes and use-by dates on “everythingfrom bingo tickets to eggs.”3

• Cloud data center and big data analytics drove the third Japantop five deal: NTT Communications’ acquisition of Germany’s e-shelter (see EMEA snapshot, page 16). Australia’s two largestdeals also targeted data center and cloud hosting technology.

• Mobility continued to drive the most APJ deals, with 27% of1Q15 volume. The largest disclosed value was in Rakuten, Inc.’s$410 million deal for a US distributor of text, audio and videocontent for libraries, businesses and educational institutions.

• Only one of India’s 25 deals had a disclosed value: Infosys’ $200 million acquisition of Israeli IT software management automation firm Panaya. Infosys sees IT automation as a way to increase efficiency — and Panaya as a way to gain access to Israel’s technology talent pool.4 n

“APJ companies are using European and US acquisitions to diversify into growing digital innovation technologies, as well as to increase their global footprint.”

Ben KwanTransaction Advisory Services Technology, Media & Telecom (TMT) Market Segment LeaderEY Greater China

APJ volume rose 80% YOY.

80%

*Asia-Pacific includes India.

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Figure 12: APJ transactions scorecard, 1Q15


Canon Inc.

GO Scale Capital

Brother Industries, Ltd.

NTT Communications Corporation

Summitview Capital/Consortium investors

Axis Communications AB

To acquire LED components and automotive

lighting business of Royal Philips Electronics

Domino Printing Sciences Plc

e-shelter facility services GmbH

Integrated Silicon Solution, Inc.

$2,804 10 Feb Corporate 62%

$2,800 31 Mar PE N/A


$833 3 Mar Corporate N/A

$640 12 Mar PE 15%

Figure 11: Top five APJ deals (corporate and PE), 1Q15


59 111 3% ▲ 88% ▲

35 32 –33% ▼ –9% ▼

$12,010 $6,976 22% ▲ –42% ▼

$343 $218 83% ▲ –36% ▼

5 4 33% ▲ –20% ▼

5 4 100% ▲ –20% ▼

$2,373 $3,559 10,685% ▲ 50% ▲

$475 $890 5,463% ▲ 87% ▲

Corporate and PE





64 115 4% ▲ 80% ▲

40 36 -28% ▼ –10% ▼

$14,383 $10,536 84% ▲ –27% ▼

$360 $293 155% ▲ –19% ▼

PE





Corporate





YOY % change



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Regional snapshot

Europe, the Middle East and Africa (EMEA)EMEA volume grew 41% YOY, while aggregate value soared 363% due largely to one big IoT semiconductor deal. Cloud/SaaSand mobility were the biggest deal drivers, followed by payments and financial systems and advertising and marketing. Of note, two mergers reshaped EMEA’s cloud data center landscape.

• EMEA volume growth continued YOY growth seen throughoutlast year. But 1Q15 volume was slightly lower than 3Q14 and4Q14. It was 21% of global volume, compared with 22% infull-year 2014 and 20% in 2013.

• The 2014 trend of EMEA buyers targeting US companies alsocontinued. The Netherlands’ NXP Semiconductors announced adeal for Freescale Semiconductor that would create a leader inautomotive chips.1 NXP plans to combine the companies’ strengthsin security, connectivity and processing to target networked devices in expanding IoT markets.2 US targets accounted for 69% of EMEA value, even though they were only 18% of volume.

• Highlighting the importance of security in IoT, British chip designer ARM Ltd. bought a Dutch IoT security developer in a $2 million deal. EMEA IoT deals also included British Gas’ purchase of a home-automation software provider.

• UK companies acquired about a third of EMEA deals overall, including three of the top five; cloud/SaaS, mobility, and advertising and marketing technology drove many of them.

• Growth in cloud/SaaS and big data analytics drove two deals thatreshaped EMEA’s data center services landscape by creating newnumber two and three market-share leaders. The buyers seek to expand capacity and their geographic footprints in an effort to satisfy fast-growing demand from global multinational customers.3 The combination of UK-based TeleCity and Dutch company Interxion creates the largest European-owned datacenter operator and Europe’s second-largest overall (after US-based Equinix, Inc.).4 But this deal is now challenged: as we went to press, Equinix made a $3.5 billion bid for TeleCity(which we’ll discuss in our 2Q15 report), stating that an Equinix-TeleCity deal was better for TeleCity shareholders than the Interxion buy.5,6 Meanwhile,Japanese telecommunications and IT services company NTT Communications quadrupled its European footprint to become the third-largest player by takinga controlling share in Germany’s e-shelter.7

• EMEA buyers acquired 27% of payments and financial servicesdeal value, including two top five EMEA deals. Optimal Payments–Skrill Holdings focuses on online payments through Skrill’s digitalwallet capabilities, which enable consumers without bank accounts or credit cards to participate in online gaming and purchase goods online.8 The other top five deal was a PE-backedmanagement buyout of insurance systems provider SSP Holdings.

• The largest of roughly a dozen deals acquired by Swiss companieswas one of two by banking software company Temenos Group.Both targets offered accounting and analytics software for financial institutions; one is based in Luxembourg ($263 million)and the other in the US ($50 million). n

“Demand for data center capacity in EMEA is growing rapidly due to cloud computing, mobile traffic and big data analytics. IT service providers are using M&A to scale up as quickly as possible.”

Simon PearsonTMT Corporate Finance Leader UKIEY UKI

EMEA aggregate value soared 363% YOY.

363%

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Figure 13: Top five EMEA deals (corporate and PE), 1Q15

Figure 14: EMEA transactions scorecard, 1Q15


NXP Semiconductors NV

TeleCity Group plc

Optimal Payments Plc

Valmet Corporation

Lloyds Development Capital/SSP management

Freescale Semiconductor Ltd.

Interxion Holding NV

Skrill Group Holdings Ltd.

To acquire process automation systems business

of Metso Corporation

SSP Holdings Plc



$927 23 Mar Corporate N/A

$402 15 Jan Corporate N/A

$306 13 Mar PE N/A


132 196 –9% ▼ 48% ▲

40 48 –17% ▼ 20% ▲

$2,734 $16,891 114% ▲ 518% ▲

$68 $352 159% ▲ 418% ▲

17 14 –33% ▼ –18% ▼

5 7 –36% ▼ 40% ▲

$1,047 $632 –84% ▼ –40% ▼

$209 $90 –74% ▼ –57% ▼

Corporate and PE





149 210 –11% ▼ 41% ▲

45 55 –20% ▼ 22% ▲

$3,781 $17,523 49% ▲ 363% ▲

$84 $319 88% ▲ 280% ▲

PE





Corporate





YOY % change


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Strategic technologies and growth through geographic expansionlaunched CB dealmaking to the strongest start we’ve seen yetas we kick off this eighth year of global technology M&A reports.US-targeted deals accelerated, again.

• In all, 1Q15 CB aggregate value of $32.2 billion (+106% YOY and 59% sequentially) nearly tied the previous record of $32.7 billion set in 3Q14. It represented 42% of 1Q15 all-deal aggregate value. That’s slightly above the historical norm but less than 45% in 4Q14.

• Seven CB deals topped $1 billion — including one above $10 billion — and totaled $25.1 billion, or 78% of all CB aggregate value.

• CB volume of 328 deals was up 42% YOY but down 3% sequentially.

• The US was a net seller (by a wide margin). Europe also was a net seller, but by a difference so small that both buyer and seller values rounded to the same percentage. This was largely due to the one NXP-Freescale $11.8 billion semiconductor consolidation deal, with a Netherlands buyer and a US seller.

• After slowing slightly in 4Q14, the pace of CB deals targeting US buyers picked up again in 1Q15. US companies were targeted in 79 CB deals, and the aggregate of those with disclosed value totaled $15.4 billion. It’s a long-term trend: 1Q15 volume is slightly more than the 2014 quarterly average of 74 deals and much higher than the 2013 average of 50 deals per quarter.

• Despite the strong US dollar, US tech companies acquired just one of the seven CB deals above $1 billion: Verisk Analytics’ $2.8 billion deal for Wood Mackenzie (UK).

• Japanese companies acquired $6.1 billion in CB value, 89% of which came from European targets. The top two: Canon’s $2.8 billion deal for Axis Communications and Brother’s $1.5 billion deal for Domino Printing Sciences (together, 80% of Japan’s value acquired in Europe).

• Of the $15.9 billion acquired by European companies, NXP’s $11.8 billion deal for Freescale (US) and UK-based TeleCity Group’s $2.2 billion deal for Interxion (Netherlands) accounted for 88% of the value.

• Intra-European CB deals, including TeleCity–Interxion, totaled $3.7 billion, only 23% of the CB value acquired by European companies.

• 50% of Canada’s CB value acquired came in Davis + Henderson’s $1.3 billion deal for transaction services provider Fundtech. n

Cross-border dealmaking startsstrong in 1Q15

Cross-border value flow



1Q15

Figure 15: Cross-border deal value flow for technology deals (disclosed value), 1Q15

CB value acquired $32.2b

CB value sold $32.2b

Other 1%

Canada 1%

Japan19%

India 1%

Asia-Pacific11%

Canada8%

US12%

Europe49%

US48%

Europe49%

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Figure 16: Global corporate and PE deals by acquiring country: cross-border and in-border, 1Q15

After two sequential declines, US CB dealmaking inched up by three deals to 124 (combined corporate and PE) in 1Q15, compared with 121 in 4Q14. Overall corporate CBdeals declined by only one deal from 4Q14, as both Japan and India doubled their CB acquisitions and the US increased by five deals, nearly offsetting declines by the UK (–11 deals), France (–9), Germany (–5) and Canada (–5).

In all, however, CB volume declined by 10 deals sequentially, as PE CB volume fell in alignment with PE’s overall 1Q15 decline. PE CB deals declined to 11 in 1Q15 from 20 in4Q14 (–9 deals), with five of those coming from the UK (–3) and US (–2).

*Additional counties with one deal in 1Q15: Canada, Ireland, Israel, Netherlands, Norway and Sweden.



Corporate deals 1Q15

Top countries 1Q14 deals 1Q15 deals% total deals No. IB deals 0% 50% 100%No. CB deals

US 460 557 60% 437 120

UK 52 61 7% 34 27

Canada 35 55 6% 26 29

Australia 11 25 3% 15 10

India 8 25 3% 15 10

Germany 12 24 3% 8 16

France 20 24 3% 14 10

Japan 14 23 2% 9 14

China/HK 16 13 1% 7 6

Sweden 7 12 1% 3 9

Other 53 105 11% 39 66

Total 688 924 100% 607 317

PE deals 1Q15

Top countries 1Q14 deals 1Q15 deals % total deals No. IB deals 0% 50% 100% No. CB deals

US 45 38 67% 34 4

UK 8 7 12% 5 2

China/HK 3 4 7% 2 2

Germany 1 2 4% 1 1

Other 13 6* 11% 4 2

Total 70 57 100% 46 11

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Number of deals

1Q14 Sequential% change

1Q15 YOY % change

Average value ($m)


1Q15 YOY % change

CE

CPE

Internet

IT services

Semiconductors

Software/SaaS

Total

CE

CPE

Internet

IT services

Semiconductors

Software/SaaS

Total

4 3 –40% ▼ –25% ▼

6 5 –29% ▼ –17% ▼

11 9 29% ▲ –18% ▼

16 14 –33% ▼ –13% ▼

1 3 N/A ▲ 200% ▲

32 23 –36% ▼ –28% ▼

70 57 –25% ▼ –19% ▼

$252 $1,211 –8% ▼ 381% ▲

$298 $2,800 11,100% ▲ 840% ▲

$798 $70 –84% ▼ –91% ▼

$792 $115 –69% ▼ –85% ▼

$21 $328 N/A ▲ 1,462% ▲

$241 $157 –57% ▼ –35% ▼

$448 $386 –18% ▼ –14% ▼

31 29 –6% ▼ –6% ▼

74 70 4% ▲ –5% ▼

103 161 25% ▲ 56% ▲

177 228 –21% ▼ 29% ▲

23 35 6% ▲ 52% ▲

350 458 11% ▲ 31% ▲

758 981 2% ▲ 29% ▲

$260 $950 41% ▲ 265% ▲

$301 $569 328% ▲ 89% ▲

$234 $240 97% ▲ 3% ▲

$245 $491 217% ▲ 100% ▲

$253 $829 83% ▲ 228% ▲

$373 $133 22% ▲ –64% ▼

$304 $380 120% ▲ 25% ▲

Figure 17: Global technology corporate and PE transactions by sector, 1Q15

CE

CPE

Internet

IT services

Semiconductors

Software/SaaS

Total

Corporate deals

PE deals

Total deals

27 26 0% − –4% ▼

68 65 8% ▲ –4% ▼

92 152 25% ▲ 65% ▲

161 214 –20% ▼ 33% ▲

22 32 –3% ▼ 45% ▲

318 435 16% ▲ 37% ▲

688 924 5% ▲ 34% ▲

$262 $906 97% ▲ 246% ▲

$301 $420 198% ▲ 40% ▲

$183 $264 197% ▲ 44% ▲

$62 $527 271% ▲ 750% ▲

$271 $896 97% ▲ 231% ▲

$394 $131 90% ▲ –67% ▼

$282 $379 171% ▲ 34% ▲ �

Four out of five technology segments enjoyed YOY volume growth in 1Q15, while the two that did not — CE and CPE — remained at or above their quarterly average for thelast two years. A different set of four segments saw large increases in average value, due to a combination of more big-ticket deals (which increases the numerator inaverage value calculations) but fewer disclosed value deals overall (which shrinks the denominator). Only software/SaaS saw a decline, due to one $19 billion deal in theyear-earlier period.


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Figure 18: Cross-border corporate and PE transactions by sector, 1Q15

Number of deals


1Q15 YOY % change

Average value ($m)


1Q15 YOY % change

CE

CPE

Internet

IT services

Semiconductors

Software/SaaS

Total

CE

CPE

Internet

IT services

Semiconductors

Software/SaaS

Total

2 0 –100% ▼ –100% ▼

1 2 –33% ▼ 100% ▲

3 2 100% ▲ –33% ▼

4 1 –75% ▼ –75% ▼

0 1 N/A ▲ N/A ▲

8 5 –50% ▼ –38% ▼

18 11 –45% ▼ –39% ▼

$303 $0 -100% ▼ -100% ▼

$0 $2,800 11,100% ▲ N/A ▲

$200 $170 34% ▲ –15% ▼

$875 $82 –74% ▼ –91% ▼

$0 $640 N/A ▲ N/A ▲

$30 $37 -92% ▼ 23% ▲

$440 $627 105% ▲ 43% ▲

12 12 0% − 0% −

28 38 31% ▲ 36% ▲

25 58 16% ▲ 132% ▲

52 54 –43% ▼ 4% ▲

8 15 –6% ▼ 88% ▲

106 151 10% ▲ 42% ▲

231 328 –3% ▼ 42% ▲

$640 $8 –97% ▼ –99% ▼

$223 $980 364% ▲ 339% ▲

$38 $343 323% ▲ 803% ▲

$352 $344 6% ▲ –2% ▼

$12 $1,806 165% ▲14,950% ▲

$145 $88 9% ▲ –39% ▼

$208 $393 106% ▲ 89% ▲

CE

CPE

Internet

IT services

Semiconductors

Software/SaaS

Total

Corporate deals

PE deals

Total deals

10 12 20% ▲ 20% ▲

27 36 38% ▲ 33% ▲

22 56 14% ▲ 155% ▲

48 53 –41% ▼ 10% ▲

8 14 –13% ▼ 75% ▲

98 146 15% ▲ 49% ▲

213 317 0% ▼ 49% ▲

$809 $8 –98% ▼ –99% ▼

$223 $720 203% ▲ 223% ▲

$20 $358 365% ▲ 1,690% ▲

$53 $368 13% ▲ 594% ▲

$12 $2,001 193% ▲16,575% ▲

$157 $91 117% ▲ –42% ▼

$172 $375 109% ▲ 118% ▲ �

Despite some high-profile IT services deals (see EMEA snapshot, page 16), a 43% sequential decline in IT services volume was behind 1Q15’s 3% sequential decline in overallCB volume. All segments enjoyed YOY volume growth except CE, which was flat. In average value, three segments increased dramatically due to big-ticket 1Q15 deals, andthree declined due to more big-ticket deals in the year-earlier quarter. Overall, CB average value remained higher than the all-deal average for the third consecutive quarter.


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• Global technology M&A update: January- March 2015 is based on EY’s analysis of The 451 Group M&A KnowledgeBase data for 2014 and 2015. Deal activity and valuations may fluctuate slightly based on the date the database is accessed.• Technology company M&A data was pulled from The 451 Group M&A KnowledgeBase based on the database’s own classification taxonomy and then deals were aligned to the following sectors: CE, CPE, semiconductors, software/SaaS, IT services and internet companies. Alignment was based on the sector of the target company. • The data includes M&A transactions between two technology companies as well as non-technology companies acquiring technology companies.• Joint ventures were not included. • Corporate M&A activity data was analyzed based on the sector classification of the target company. Prior to 2012, we reported based on the classification of the acquiring company; the change enables a clearer picture of the technologies being focused on for acquisition. • Equity investments that involved less than a 50% stake were not included in the data. • PE M&A activity includes both full and partial stake transactions in excess of 50% and was analyzed based on acquisitions by firms classified as private equity, sovereign wealth funds, investment holding companies, alternative investment management groups, certain commercial banks, investment banks, venture capital and other similar entities.• Unsolicited technology deal values were not included in the data set, unless the proposed bid was accepted and the deal closed based on data available at the time of analysis.

• The value and status of all deals highlighted in this report are as of 31 March 2015, unless otherwise noted.• All dollar references are in US dollars, unless otherwise indicated.• In this report, disclosed deal values may vary from other published values because The 451 Group database methodology automatically subtracts cash acquired, net of debt, from enterprise value. Additionally, announced deal values are often subject to change at the time of close, due to subsequent revisions to the terms of the deal and/or changing stock valuations to the extent stock was used as a deal consideration.• As used in this report, “total value” refers to the aggregate value of deals with disclosed values for the period under discussion.• Other definitions: • “TTM” stands for trailing 12 months. • “Multiple of EV/TTM revenue” is the transaction value multiple representing total enterprise value over trailing 12 months of target revenue. • “Multiple of EV/TTM EBITDA” is the transaction value multiple representing total enterprise value over trailing 12 months of target EBITDA (earnings before interest, taxes, depreciation and amortization). • “Premium offered” represents the percentage difference between the purchase price and the share price value 30 days prior to the announcement of the deal. Where data is unavailable from The 451 Group, premium data was accessed via Capital IQ. n

Methodology


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Source notes

Tech M&A records just keep on coming1 Navigating the four themes of technology disruption, EY, © 2015 EYGM Limited.2 “Startup Funding Hits 15-Year High While Valuations Set Record,” Dow Jones Institutional News, 20 April 2015, via Factiva, © 2015 Dow Jones & Company, Inc.3 “NXP CEO: ‘Security, IoT, Cars’ Drove Freescale Deal,” EE Times, 3 March 2015, via Factiva, © 2015 UBM Tech. 4 “Under Armour Inc Investor Day — Final,” CQ FD Disclosure, 10 February 2015, via Factiva, © 2015 by CQ-Roll Call, Inc.5 “Samsung Makes Move Into Mobile Payments: Electronics giant buys U.S. startup LoopPay to compete against Apple Pay, Google Wallet,” The Wall Street Journal Online, 18 February 2015, via Factiva, © 2015 Dow Jones & Company, Inc.6 “Following Google deal, Softcard is shutting down its Android and Windows Phone apps,” VentureBeat, 25 February 2015, via Factiva, © 2015 VentureBeat.7 “Amazon confirms its acquisition of 2lemetry, an Internet of Things startup,” VentureBeat, 12 March 2015, via Factiva, © 2015 VentureBeat.8 “Infosys Ltd to acquire Panaya Inc — Final,” CQ FD Disclosure, 16 February 2015, via Factiva, © 2015 by CQ-Roll Call, Inc.9 “Bain sees IPO potential for $2.4 bln Blue Coat Systems buyout,” PE HUB, 25 March 2015, via Factiva, © 2015 Buyouts Insider/Argosy Group LLC.10 Ibid.

Regional snapshot: Americas1 “Catamaran and OptumRx to Combine,” UnitedHealth Group Press Release, 30 March 2015, © UnitedHealth Group.2 “Harman International Industries to Acquire Symphony Teleca & Red Bend Conference Call –Final,” CQ FD Disclosure, 22 January 2015, via Factiva, © 2015 CQ-Roll Call, Inc.

Regional snapshot: APJ1 Global technology M&A update, January-March 2014, EY, © 2014 EYGM Limited.2 “More deals ahead? China fund buys Silicon Valley chip maker,” Mobile Tech Today, 10 April 2015, via Factiva, © 2015 CIO Today Network.3 “Numbers line up for Japanese as Brother picks up £1bn Domino,” The Times, 12 March 2015, via Factiva, © 2015 The Times Newspapers Ltd. 4 “Infosys Ltd to acquire Panaya Inc. — Final,” CQ FD Disclosure, 16 February 2015, via Factiva, © 2015 CQ-Roll Call, Inc.

Regional snapshot: EMEA1 “NXP CEO: ‘Security, IoT, Cars’ Drove Freescale Deal,” EE Times, 3 March 2015, via Factiva, © 2015 UBM Tech.2 Ibid.3 “TeleCity Interxion to Merge in Data-Center Deal,” The Wall Street Journal Online, 11 February 2015, via Factiva, © 2015 Dow Jones & Company, Inc. 4 “e-shelter Deal Makes NTT Europe’s Third- Largest Data Center Provider,” Data Center Knowledge, 3 March 2015, via Factiva, © 2015 iNET Interactive.5 “Equinix moves to gatecrash TeleCity, Interxion deal,” Reuters, 7 May 2015, via Factiva, © 2015 Thomson Reuters.6 “Response to announcement by TelecityGroup plc,” Equinix Press Release, 7 May 2015, © 2015 PR Newswire Association LLC.7 “e-shelter Deal Makes NTT Europe’s Third- Largest Data Center Provider,” Data Center Knowledge, 3 March 2015, via Factiva, © 2015 iNET Interactive.8 “Optimal Payments strikes €1.1bn digital wallet deal for Skrill,” The Financial Times, 23 March 2015, © 2015 The Financial Times Ltd.

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Ranjan BiswasIndia+91 806 727 5131 [email protected]

Tim DuttererCo-Leader Technology, Parthenon-EY+1 415 264 [email protected]

Staffan EkströmGlobal Telecoms Leader –Transactions andTMT Leader, Nordics+46 8 520 593 90 [email protected]

David HedleyUS Technology M&A Leader+1 415 984 7128 [email protected]

Neil HuttUnited Kingdom+44 1189 281535 [email protected]

Ben KwanTAS and TMT Market Segment LeaderGreater China+852 2849 9223 [email protected]

Simon PearsonUnited Kingdom+44 20 7951 0418 [email protected]

Barak RavidCo-Leader Technology, Parthenon-EY+1 415 894 [email protected]

Dr. Carsten F. RischGermany+49 30 25471 21426 [email protected]

Ken SmithTAS Leader, Japan+81 3 4582 6400 [email protected]

EY | Assurance | Tax | Transactions | Advisory

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors forspecific advice.

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