Merger and acquisition activity during the first half of the year across the mobile and online space increased 3% compared with the final half of 2011, with total M&A transaction values surging 20% over the same time frame, according to a new report from Berkery Noyes.
Total transactions increased from 939 reported during the final three months of 2011 to 970 reported transactions during the first half of this year, while transaction values increased from $28.38 billion in 2011 to $34.12 billion this year.
The firm noted that SAP America’s $4.4 billion acquisition of Ariba led the segment in total value during the first six months of 2012 and that the SaaS/ASP space registered 250 transactions during the first half of 2012.
In commenting on the SAP/Ariba deal, Ovum noted the deal furthered SAP’s push into cloud services. “This is a logical step for SAP as it needs to accelerate its move into the cloud,” noted Carter Lusher, chief IT analyst at Ovum. “This acquisition is consistent with SAP’s overall M&A strategy and complements the SuccessFactors acquisition in December – providing greater depth of products, executives, and tech talent for the cloud. For Ariba, it’s unlikely the talent, technology and product will be cut. Instead, I expect SAP will invest heavily in Ariba’s R&D. While there is no immediate impact on SAP’s competitors, there could be a need for concern should SAP successfully accelerates its move into the cloud.”
The e-commerce segment posted the largest volume increase, growing 21% from 169 reported transactions during the final half of 2011 to 205 transactions so far this year.