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Some of the hottest industries today fall within technology, and, in truth, it’s where you see the most significant level of merger activity. Though the year is young, the merger market is revving up in anticipation of stronger economic growth in 2017 and beyond.
As technology proliferates and transforms traditional businesses, consolidation-plays emerge for savvy acquirers.Each year brings surprises such as what mergers will take place and in what industries.
Sectors in technology like medical devices, indoor farming, and data security are just some of the industries to keep an eye on in 2017.Ā Forbes predicts tech and energy are likelyĀ the top two categories this yearĀ to lead the way in mergers & acquisitions.
SoĀ what are the must watch industries for 2017?Ā Hereās our prediction:
1.)Ā Medical Devices
The world of healthcare continues to see significant growth through new business partnerships. It’s in the medical device field where you’re seeing tremendous growth, especially in the past couple of years.
Becker’s Hospital Review notes there wereĀ 153 significant mergers in the medical device industryĀ between 2015 and 2016. They’re expecting the same exponential growth through 2017.
Recent ones for January includeĀ a $13 million payout to MedihoneyĀ from Derma Science after a $200 million buyout from Integra LifeSciences. Medihoney is a prestigious tissue regeneration company that’s creating new devices for healing wounds.
Another recent merger, on January 12th, involvedĀ Grifols paying $51 million for a 49% stake in Access Biologicals. Access Biologicals specializes in bio supplies.
2.)Ā Indoor Agriculture
Evidence shows indoor agriculture isĀ a $500 million industryĀ here in the United States. With automation becoming more common, as well as big data, mega farms, and nano-farms, there’s a bigger demand for indoor farming companies.
The biggest deal recently completed is theĀ Bayer-Monsanto merger this last year, which could very well change how indoor farmers deal with seeds, pesticides, and fertilizer. Nevertheless, you’re still seeing a lot of significant smaller mergers in the industry,Ā including companies like PureAgro in California.
One of their partners, Way to Grow, merged this year making PureAgro a leader in solutions for indoor plants, produce, and cannabis growers in California and Colorado.
3.)Ā Data Security
Given the omnipresent threat of hacking, cyber security is now an important consideration before tech mergers take place. This is all the more reason why data security has become a must-watch industry. Mergers in this arena are already beginning.
One of the most prominent isĀ Cisco’s avid investing in tech security companies. At the beginning of this year, they’re still considering various mergers, though still up in the air which ones.
Other Industry Mergers to Considerā¦
Fortune notes that some big tech companiesĀ could experience major mergersĀ this year which could affect the direction in future tech company acquisitions.
Could Comcast buy T-Mobile thereby creating a new path for wireless phone service? Itās possible. Ā Plus, Netflix may get bought out by another major media company. The possibilities are endless.
Thoughts or questions on M&A? Please join the conversation or email me [email protected] . www.AttractCapitalcom
