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India: domestic transactions account for 70% of the M&A activity by volume

Thursday 3 July 2014 13:58 CET | News

Indian domestic transactions has cumulated a notable 70% of merger and acquisitions (M&A) volume since 2010, according to the “India Technology Product M&A Industry Monitor Report” issued by The Indian Software Products Industry Roundtable (iSPIRT) and Signal Hill, a technology focused middle market advisory boutique, thehindubusinessline.com reports.

According to the report, there have been 159 M&A transactions involving Indian technology product companies from 2010, with a total estimated transaction value of USD 1.78 billion.

Speaking of the value factor, the 48 inbound M&A transactions account for 63% of the estimated M&A transaction value, due to a higher average deal size of USD 23.3 million versus USD 6 million.

The B2B software segment accounted for 56% of all inbound M&A transactions with foreign players, mostly US and European, acquiring Indian software companies. Ecommerce and internet segments cumulated 83% of the total transactions value and dominated domestic M&A, with Naspers’ acquisition of Redbus being the exception.

VC/PEs investment in Israel was half that of India, with USD 3 billion. However, the total technology product M&A deal values in Israel was over 6 times the transaction value seen in India, mainly driven by a much higher average M&A transaction size in Israel (USD 100 million versus USD 11 million).


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Keywords: India, domestic transactions, M&A, volume, ISPIRT, market share, acquiring software company, online sales
Categories: Payments & Commerce
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Countries: World
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