Investment in the fast-growing market for internet-connected devices gathered pace this year and is set to attract more top US technology and telecoms buyers of firms active in the market, a report from a merger advisory firm said on Thursday.
Corporate finance adviser Hampleton Partners's report said that $9.4 billion has been spent in the past three years to acquire so-called Internet of Things suppliers, with $5 billion, or more than half of the total, in the first nine months of 2014.
The report, which studied more than 100 transactions in the category, said that early consolidation has been led by Google but also included Cisco Systems, Samsung Electronics, Vodafone and Verizon.
Corporate finance adviser Hampleton Partners's report said that $9.4 billion has been spent in the past three years to acquire so-called Internet of Things suppliers, with $5 billion, or more than half of the total, in the first nine months of 2014.
The report, which studied more than 100 transactions in the category, said that early consolidation has been led by Google but also included Cisco Systems, Samsung Electronics, Vodafone and Verizon.
Hampleton predicted that likely new acquirers in the coming year could include Intel, AT&T, Johnson Controls, Texas Instruments and Juniper Networks, which it said are under pressure to compete in the market. Other buyers to watch include Sierra Wireless and Telit Wireless Solutions. Further fueling investment are venture capitalists that have pumped more than $1 billion into startups in the sector over the past year.
While average deal size has remained small at about $112 million, acquirers have paid rich Silicon Valley-level price premiums of 11.2 times revenue for publicly disclosed deals.
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