Tech M&A: Looking to 2014

February 26, 2014
M&A activity in the consumer electronics (CE) industry continued to thrive in the second half of 2013, with several notable transactions announced later in the year. In our mid-year review, we highlighted the lack of private equity transactions in the CE space and pondered the implications of an equally slow second half of 2013. We are relieved to report that after a quiet first half, private equity investors and venture capitalists poured more than $1 billion into CE companies. The Carlyle Group’s $500 million investment for a minority stake in Beats Electronics was the largest transaction in the ...

Succeeding in Competitive Markets

October 18, 2013
The CE industry continues to grow with revenues projected to rise to $203 billion buoyed by gains in mobile devices, connected solutions and online media consumption. But even as selection and value increase for today’s buyer, features and pricing are becoming more commoditized. A recent Gartner report urged smart TV makers, who are expected to triple production by 2016, to create unique brand strategies to entice consumers. Going forward, businesses must be remarkable or risk being seen as replaceable in the minds of consumers.   As evidenced by the music, movie and news media industries, where high-quality content is plentiful and alternatives readily available, the more...

What Is Driving M&A?

August 05, 2013
The trends and products that dominated the 2013 International CES® have proven clear winners in mergers and acquisitions (M&A). If you walked the North Hall, you know that the digital health and fitness category is booming and “lifestyle” is the new buzzword for many brands. These trends are playing out on the M&A front as acquisition and divestiture activity has been dominated by corporate buyers (and sellers), with private equity buyers trailing. We’ve taken a close look at drivers of M&A activity so far in 2013 to bring you a snapshot of where dealmakers are focusing their dollars. Jawbone, which...

The M&A Sound Check

January 06, 2013
The consumer electronics (CE) industry continues to undergo significant change and foster innovation despite a weak economic backdrop and lingering high unemployment. In 2012, the industry continued to attract a significant amount of capital, ranging from early-stage VC to private equity, and strategic merger and acquisition activity. A few sectors dominated the CE M&A landscape in 2012: audio technologies, mobile telecommunications and content, and home automation, as companies and investors poured capital into intellectual property-rich companies that offered technological differentiation or held valuable market share.   Indeed, the capital and merger activity in the CE...