M&A Round-Up: Week of October 11th, 2023
TRG Screen Receives Growth Investment
On October 3rd, TRG Screen, a subscription management software provider, secured a $250M growth investment from Vista Equity Partners . As an enterprise SaaS company specializing in monitoring expenditure and data usage, TRG Screen offers services that encompass software license oversight, market data sources, consulting expenses, and corporate expenditures. The growth capital will be dedicated to driving product development, expanding talent acquisition efforts, and bolstering go-to-market functions.
Vista Equity Partners' investment reflects the potential within the spend and license management space, driven by the increasing prevalence of SaaS tools within a company’s technology stack. In 2022 alone, financial market data expenditures amounted to $37.3B, highlighting the substantial market opportunity that TRG Screen and Vista Equity Partners aim to capitalize on through this partnership.
黑莓 to Explore Spin-off IPO
In a move aimed at rekindling investor enthusiasm, BlackBerry, historically renowned for its innovations in smartphones and messaging, has unveiled plans to restructure its operations by dividing the company into two distinct entities through the spin-off of its connected car technology business.
BlackBerry's leadership perceives its shares as undervalued in the market, primarily due to the lack of a comprehensive understanding of its business performance by investors, with its stock declining by 20% in the past six months. The company's cybersecurity division has failed to meet expectations, while its operations in the IoT and device management space have been hindered by intense competition within a mature industry. In contrast, BlackBerry has witnessed significant growth in its car connectivity software segment, outpacing revenue growth in all other divisions.
The spin-off aims to revitalize investor sentiment, offering enhanced transparency into performance metrics and ultimately leading to increased shareholder value. The initiative has garnered support from institutional investors and equity analysts alike, with the anticipated spin-off targeted for March 1st, 2024.
Vista Equity Partners Considers Sale of Quickbase
Private equity firm Vista Equity Partners is considering selling low-code development software company Quickbase, which could fetch a price of $2.5B. Vista is working with an advisor to solicit interest, but a definitive decision has yet to be made as they are still considering holding the company within their portfolio.
Quickbase was acquired by Vista in 2019 from Welsh, Carson, Anderson & Stowe and has successfully guided the company past $200M in revenue in 2022.
US Spending Remains Strong
According to a report published by 麦肯锡 , consumers remain optimistic about the US economy. While the confidence of high-income earners has slightly declined, other income groups have seen a lesser drop. Among all earning demographics, Gen Z and Millennials are most likely to maintain their current spending levels, as indicated by their willingness to “splurge.”
Categories that have generated the most spending activity in 2023 are restaurants, groceries, and travel, while vehicles, household essentials, and home goods have remained a lower priority for consumers. Consumers have been looking to spend outside of the home post-pandemic and are expected to continue this trend for the foreseeable future.
Despite the Federal Reserve continuing to take decisive action against inflation, consumer spending remains high. As a result, there is a sense of optimism about the US economy compared to the beginning of the year. If inflation continues to fall at the rate the Fed anticipates and consumer spending remains strong, the US could achieve the highly sought after soft landing.