RI-2018年Q1技术市场回顾报告（英文版）-2018.4-70页-15mb

Q1 2018 Digital Services and Enterprise Software Market Review Summary

Core Content Overview

This report provides a detailed review of the Digital Services and Enterprise Software sectors during Q1 2018, highlighting key trends, deal activity, and market performance. It is part of Results International's quarterly market update and is strictly private and confidential.

Key Highlights

Digital Services Overview

• Total Deals: 97 deals were announced in Q1 2018, an increase from 75 deals in Q4 2017.
• Subsector Activity:
  • Bespoke Software & Systems Integration (57 deals): Most active subsector.
  • Strategy, UX, Design & Build (18 deals): Second most active.
  • E-Commerce (8 deals): Third most active.
  • Mobile App Development (7 deals): Fourth most active.
  • Data & Analytics (7 deals): Fifth most active.
• Market Trends:
  • Public markets in IT/Consulting Services and Marketing Communications showed gains of 10.5% and 0.2%, respectively.
  • The Nasdaq gained 0.8% during the same period.
  • Marketing Services had a volatile quarter, down 12.5% over the previous year.
  • Major players like WPP and other large agencies faced challenges.
• Notable Acquisitions:
  • NEC Corporation acquired Northgate Public Services for £475M.
  • Capgemini acquired LiquidHub for $495M, expanding into digital marketing and CRM.
  • EY acquired Sonoma Partners (Microsoft Dynamics consultancy).
  • Deloitte acquired API (Amazon Web Services integration consultancy).
  • RE/MAX acquired Surge (real estate website specialist).
  • Cars.com acquired Launch Digital (auto dealership website development).
  • Spotify acquired Sonalytic (AI company).
  • Amazon.com acquired pushbutton (UX company).
  • Merkle acquired OxyMA (performance marketing).
  • Rakuten acquired DC Storm (data and analytics).
  • Entravision acquired Headway (programmatic advertising).
  • Accel-KKR made a $20M investment in Clavis Insight (eCommerce tech).
  • Utilgroup was acquired by Empowering Energy Choice (enterprise software).
  • STAGWELLGROUP acquired Forward3D (performance marketing).
  • MERKLE acquired OxyMA.
  • Entravision acquired Headway.
  • Entravision acquired captify®.
  • Amazon.com acquired pushbutton.
  • Spotify acquired Sonalytic.
  • Accel-KKR invested in Clavis Insight.
  • Utilgroup acquired by Empowering Energy Choice.
  • KPS AG acquired Infront Consulting Group and Envoy Digital.
  • Private equity and traditional buyers remained active in the digital services space.

Enterprise Software Overview

• Total Deals: 424 deals were announced, marking the strongest quarter for the sector.
• Subsectors Covered:
  • Infrastructure
  • Security
  • ERP (diversified, financial accounting, and SCM)
  • Analytics
  • Human Capital Management
  • AdTech/Martech
  • HealthTech
  • Other Vertical
• Special Reports:
  • The Cyberscope (Security)
  • The Barometer (Marketing Technology)
  • The Heartbeat (HealthTech)
• SaaS-First Models:
  • Companies with SaaS-first strategies are highlighted as key players.

Key Information and Metrics

Digital Services: Selected Deals

• Data & Analytics:

  • Fractal acquired finalmile.
  • PARAGON PARTNERS acquired Unicepta.
  • Abbonamenti PRESS-DI acquired Direct Channel.
  • shaw + scott acquired loxley+.
  • 10TH MAGNITUDE acquired Northwest Cadence.
  • Association of Equipment Manufacturers acquired hargrove.
  • CapitalOne acquired NOTCH.

• Strategy, UX, Design & Build:

  • The Glimpse Group acquired early-adopter.com.
  • silvertech acquired bitwise.
  • Alcuin Capital Partners acquired JIGSAW.
  • virtusa acquired eTouch for $140M.
  • Private Investor acquired Interstruct Communications AG.
  • RE/MAX acquired booj.
  • ICTA acquired FFW.
  • MSM acquired Eancy Boys.
  • COPS.COM acquired Launch Digital Marketing.
  • catalyte acquired surge.
  • Maltem Consulting Group acquired OMNLOG.
  • Salesforce acquired Sequence LLC.
  • Indra acquired paradigma.
  • planeetta acquired SITEFACTORY.
  • blink acquired tectonic.
  • VISMA acquired COe.
  • SMICE acquired Virtua.
  • IDX acquired AGENT MARKETING for $6M.

• Bespoke Software & Systems Integration:

  • EY acquired Sonoma Partners.
  • ZenSARTECHNOLOGIES acquired CYNSURE for $33M.
  • Deloitte acquired APL (AWS integration).
  • EvSYS acquired Newbury Taleo Group.
  • KONICA MINOLTA acquired TECHLINECOMMUNICATIONS, INC..
  • brillio acquired comity.
  • <epam> acquired CONTINUUM.
  • Alithya acquired EDGEWATER.
  • Telia acquired SOLUTIONS.
  • PINNACLE acquired MSA.
  • ApaxPARTNERS acquired Bip..
  • DXC.technology acquired m-powersolutions.
  • Capgemini acquired liquidhub for $495.2M.
  • VISMA acquired OptiWay.
  • Taldor we deliver IT acquired SPECTORY. for $4.4M.
  • SPIRIA acquired devBBQ.

• E-Commerce:

  • EMAKINA acquired wittyCOMMERCE for $1.2M.
  • Samos Sinapsis acquired Vian..
  • CreativeDrive acquired decora for $100M.
  • astound COMMERCE acquired FLUID.
  • visiture acquired ExpandLab.
  • valtech acquired TRUECLARITY.
  • KPS acquired ENVOY.
  • Hamee acquired Consulting for $3.2M.

• Mobile App Development:

  • Xiamen Jihong Package Technology acquired Beijing SDL Technology for $29.8M.
  • Life360 acquired PathSense (team and IP).
  • KPMG acquired RAINMAKER LABS (Singapore and Vietnam).
  • Investor consortium acquired WEYLAND TECH.
  • Right of Reply Ltd. acquired BSSONE for $1M.

Publicly Traded Companies in Digital Services

IT/Consulting Services

Marketing Communications

• BlueFocus Communication Group: Price $1.27, 86% of 52W High, Market Cap $2,776M, Total Cash $341M, Net Debt $520M, Enterprise Value $3,296M.
• CACI International: Price $151.35, 95% of 52W High, Market Cap $3,727M, Total Cash $56M, Net Debt $1,096M, Enterprise Value $4,824M.
• Other companies: Data is incomplete or not provided for specific metrics.

Key Viewpoints

• The Digital Services sector is experiencing significant growth and consolidation, with a notable increase in deal activity.
• Bespoke Software & Systems Integration is the most active subsector, driven by the need for specialized digital transformation solutions.
• Capgemini, NEC, and EY made major acquisitions, indicating a trend towards expanding digital capabilities.
• Private equity and traditional buyers are increasingly active in the digital services space.
• The public markets show mixed performance, with IT/Consulting Services leading the gains.
• Marketing Communications is more volatile, with WPP and other large agencies struggling with market conditions.
• The need for digital transformation is becoming a strategic imperative for many companies, making it a favorable time for fundraising, exit, or acquisition.

Conclusion

The Q1 2018 Digital Services and Enterprise Software markets are dynamic, with high deal activity across multiple subsectors. Companies are leveraging acquisitions to expand their digital capabilities and improve market position. The sector is expected to continue evolving, offering opportunities for growth and transformation.