Are we about to enter a period of increasing M&A activity within the software industry? If so, what do software companies look for in an acquisition?
Companies with cloud computing seem to be a common trend among accounting software providers but there are other areas that they’re looking for, such as complementary products, and technology trends like AI and big data.
When Sage lodged a £654m ($850m) bid to acquire the US enterprise accounting cloud developer Intacct, there were many raised eyebrows. However, it fell in line with CEO Stephen Kelly’s mission to make Sage a “leaner, more global organisation” and it followed an acquisition trail within the financial year of HR developer Fairsail (now Sage People) and analytics company Compass.... Of the current technology trends, he (Kelly) says that AI, automation, cloud computing and software-as-a-service (SaaS) were all “increasingly important to optimising business and enterprise performances” and were therefore being “constantly observed”, adding that investments would be made when appropriate.