At Hampleton, we’re excited about the future of the Internet of Things. As embedded capabilities become ubiquitous and gain the ability to communicate, new information networks are being developed which promise to create new business models, improve processes and reduce costs and risks. This activity, in turn, has catalysed a wave of consolidation for IoT targets – with no sign of slowing down in the year to come.
Led by Director David Riemenschneider and Managing Director Jo Goodson, Hampleton’s IoT practice focuses on four key areas of the sector’s ecosystem:
Our experience with IoT companies shows that the most desirable acquisition targets are firms with core competencies concentrated around security, analytics and connectivity platform capabilities. Within these types of product categories, we find that IoT vendors are keen to partner with companies in vertical segments like automotive, health care, manufacturing and consumer wearables.
In addition to the steady rise in transaction volumes for IoT targets since 2014, there has also been an increase in the worth of companies being acquired. That is to say, although top tier firms like Cisco, INTEL, ARM and Honeywell still purchase niche startups for modest prices for a promising IoT product, M&A deals of $1 to $2 billion are becoming increasingly common – such as Cisco’s purchase of Jasper for $1.4 billion in 2016.
For data on valuations, information about acquisition drivers and trends, as well as top buyer lists, please download a complimentary copy of most recent research report covering IoT M&A.