M&A Snapshot

Q2 2017 M&A Snapshot

Posted On: July 3rd, 2017

Sector Status:

2017 continues to be a healthy year for M&A.  Core M&A and total consideration exchanged continued to increase (+20%) from last year, carrying the positive momentum we’ve seen for some time.

Of the notable activity in the quarter, Cisco, generally known and praised for its acquisition savvy, continued its tear as of late.  In 2017, most notably, it acquired AppDynamics in January for $3.7 billion (19x LTM revenue) shortly before AppDynamic’s planned IPO.  This quarter, it made two premium acquisitions by buying software-defined wide area network startup Viptela for $610 million (24x LTM revenue) and virtual assistant developer MindMeld for $125 million (8.1x invested capital).

Another significant acquisition that made headlines this quarter was Amazon’s acquisition of Whole Foods.  We’ll all see how Amazon intends to use Whole Foods’ 466 stores nationwide to begin to add “legacy” physical store retail.  We’re interested to watch how this acquisition may impact the plans of other online retailers.

Q2 2017 M&A Snapshot by ArchitectPartners on Scribd