M&A Snapshot

Q1 2017 M&A Snapshot

Posted On: April 4th, 2017

Sector Status:

M&A activity continues to show good momentum this past quarter.  Deal volume, total consideration exchanged and average deal size all continued an upward trend from a year ago.

By its nature, M&A transactions generally represent an effort to achieve an incremental step forward by the acquirer.  Not often do we see a truly “strategic” transactions, but this past quarter, Intel’s acquisition of Mobileye for $15.4 billion (42x LTM revenue!) certainly fell into that category.

Via this acquisition, Intel has clearly acknowledged that the automobile/truck is rapidly becoming an important new “computing platform”.  As well said by ReCode last year, vehicles now contains (or will soon):

… supercomputer-level performance, the highest-end GPUs, multiple large-size, high-resolution displays, surround-sound-enabled high-resolution audio, integrated 4G connectivity, multiple-function-specific controllers, voice- and touch-based modes of input, a dedicated connectivity bus for internal communications between subsystems, millimeter-level location and mapping accuracy, multiple high-resolution camera inputs, and a high-level operating system that can even virtualize guest OSes

Mobileye secures Intel an important strategic position as autonomous vehicles become the new reality over the next decade.

Below find our Q1 assessment:

AP Q1 2017 M&A Snapshot FINAL by ArchitectPartners on Scribd