12/31/2022 0 Comments 2018 high s![]() The Gartner IT practice provides CIOs and IT leaders with the insights and tools to drive the organization through digital transformation to lead business growth. Follow news and updates from the conference on Twitter using #GartnerTGI.Ībout the Gartner Information Technology Practice Gartner analysts will provide additional analysis on how technology service providers can accelerate growth, drive product innovation and leverage emerging technologies at the Gartner Tech Growth & Innovation Conference 2021, taking place virtually July 20-21 in the Americas. Gartner Tech Growth & Innovation Conference Gartner clients can read more in the report “Tech CEO: Acquisition Strategies During COVID-19 and Implications for Providers.” “Without empathy and a deep understanding of what motivates the existing customer base, organizations risk acquiring a customer base that will churn following deal closure,” said Mr. Successful acquirers will consider the implications for end-users and make customer experience (CX) a top priority across each stage of the M&A life cycle.ĬIO customers of vendors undergoing an integration expect minimal service disruptions and transparent communications on product, pricing and support changes, if any. The expected uptick in M&A activity throughout this year cannot leave existing customers behind. ![]() “Instead of making acquisitions or being acquired, tech CEOs will start to consider partnerships and ecosystems to level the playing field against larger companies resulting from consolidation in their markets,” said Mr. These consolidation trends suggest tech CEOs must be prepared for competitive landscapes where key competitors merge, especially among service providers. The largest M&A activity gains in the second half of 2020 involved financial acquisition of communications providers (93% growth), and acquisitions of services providers by financial acquirers were 30% higher in the fourth quarter of 2020, compared to the prior two years’ average.Ĭonsolidation Trends Indicating High Degree of Overlap Between Acquirers and TargetsĬonsolidation of providers with high degrees of overlap increased by 65% and 40% in services and software markets, respectively, in the second half or 2020, compared to the average number of M&A transactions in 20 (transactions of over $1 billion in value were excluded) Despite software already being the largest category, financial acquirers’ increasing interest should drive higher activity in 2021. Throughout 2020, financial acquisitions of software providers represented over half of all such acquisitions. Financial Acquirers Demonstrating Growing Interest, Especially in Software ProvidersĪcquisitions of technology providers are met with increasing interest among financial services companies, predominantly private equity firms.
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