2015 M&A

According to data presented at Corum Group’s M&A Conference in Melbourne last month, there’s record cash available for mergers and acquisitions in tech. If you’re a company at the forefront of one of these new trends right now, there’s never been a better time to get your ducks in a row for acquisition.

Convergence of Sports and Gaming Industries
The converging industries of sports and gaming form one of the biggest opportunities, as creating more digitally interactive sports and turning video games into spectator sports. We’ve seen the rise of Twitch, a company not unlike YouTube, to which gamers freely upload gameplay of themselves onto the service, and of which a staggering amount of hours are consumed solely on. Last year Amazon bought the company for $1 Billion(US). But the convergence continues, with great opportunity in the field of gambling. While that type of sport hasn’t shrunk to an alarming amount thanks to rising technology, the form hasn’t been truly modernised by tech yet. With the rising sector of virtual reality among others, casinos and could be creating a whole new stream of revenue through interactive VR experiences owned by them, and they should soon be on the lookout for such companies.

Internet of Things
The launch of the Apple Watch is just the beginning. The potential of the internet of things market is so great that it’s projected to turn into a multi-trillion dollar industry. Opportunity within it is great, and you don’t have to be making hardware to jump in on the act. Each thing needs a software platform, communications, analytics and more. Just looks at Apple Watch and Android Wear devices. They’re great for what they are, but they’re the bare minimum. The potential of each device with some useful apps designed specifically for them is tremendous. As is the emerging trend of blurring the lines between software and hardware. The same goes for virtual reality. There are so many ideas of how we will use it, from running Windows 10 to travelling to a destination without leaving your sofa. This technology has the chance to change so many industries, and each company is rapidly snapping up companies specialising in VR to explore their own visions of it.

Online Currency and Mobile Payments
We’re also seeing the first full software cycle of services reducing the friction between thought and action. Digital currency, mobile wallets, innovative payment systems and more are engaging a wave of interest. The ridiculousness that accompanied the first wave of  crazy Bitcoin valuations may have simmered now, but the world’s first fully digital currency is steadily finding its place at the centre of the internet-only economy. Its democratising nature continues to be a unique selling point of its worth, and its supporters are fiercely loyal and hyper-engaged, which will continue to drive its relevance. It also seeps into the continuing growth of mobile payments, which we’re only just seeing the start of with Apple and Android Pay among others. As more stores in the physical world adapt, the need to carry cash will sharply reduce, making the need for a universal, reliable and secure system all the more imperative. Every tech company is trying to be the one to create the standard, and they’ll snap up however many startups they need to get there.

Data Security
Which brings us to security. It’s going to be a high priority to have all these new forms of software be secure. Thanks to the high profile hacks of Sony, Target, JP Morgan and more, data security companies have a forever growing opportunity. All these new devices, payments systems, and VR technologies bare a need for data security. And with the emergence of the cloud, companies and consumers will be looking for new and innovative companies they can rely upon to keep their data safe.

If you’re business fits into one of these categories, it may be time to seriously consider a merger or acquisition.

To find out exactly how to do that, stay tuned for the next article in this series.