New 451 Research Report Predicts Improved Liquidity for Enterprise Technology Companies, Citing Two Dozen IPO Prospects for 2012
While Facebook's record-setting IPO has put the focus on consumer technology startups, a number of enterprise technology companies are ripe for richly valued offerings of their own
NEW YORK, Feb. 14, 2012 /PRNewswire/ -- While financial markets are abuzz with talk of high profile IPOs for consumer companies like Facebook, a number of enterprise technology companies are quietly but consistently moving along the path to liquidity events of their own. The new Tech M&A Outlook report from 451 Research names 23 of the most likely IPO prospects from the enterprise tech landscape, along with dozens of other companies that are likely M&A targets in 2012.
The 93-page report analyzes the key innovations that are driving a robust market for enterprise startup exits in the coming year whether in an IPO or a trade sale.
"Many of the technologies that previously were considered 'disruptive' are now becoming mainstream," said Brenon Daly, M&A Research Director, 451 Research. "As that happens, a new class of fast-growing vendors is set to bring their stories to Wall Street, which has always put a premium on growth."
A number of the candidates for the IPO Class of 2012 are disrupting multibillion-dollar markets. For some companies (such as ServiceNow in the IT service management market) the disruption comes through the business model. For other companies (such as Violin Memory in the solid-state storage market) the technology itself is the disrupting factor.
Key members of the tech finance community expect a busy 2012 for IPOs. In two separate surveys conducted in December by 451 Research, both corporate acquirers and senior tech investment bankers said they expect on average 25 technology companies (both consumer and enterprise) to go public in 2012.
Meanwhile, the market for M&A, which is a far more likely exit for most startups, is also expected to stay healthy in 2012. In the survey, more than half (56%) of the corporate development executives projected they would be doing more M&A deals this year than last.
That would put 2012 on track for a third-straight year of increased spending on tech acquisitions since bottoming out in the recession-plagued year of 2009. Among the trends that will likely shape M&A deal-flow in the coming year: increased interest in patents, especially for legal defense; a broadening pool of buyers for SaaS properties; and "consumerization" of IT that adds social functionality to traditional enterprise offerings.
To obtain an executive overview of the Tech M&A Outlook Report please click here.
About 451 Research
451 Research, a division of The 451 Group, is focused on the business of enterprise IT innovation. The company's analysts provide critical and timely insight into the competitive dynamics of innovation in emerging technology segments. Business value is delivered via daily concise and insightful published research, periodic deeper-dive reports, data tools, market-sizing research, analyst advisory, and conferences and events.
Clients of the company -- at vendor, investor, service-provider and end-user organizations -- rely on 451 Research's insight to support both strategic and tactical decision-making. 451 Research is headquartered in New York, with offices in key locations, including San Francisco, Washington DC, London, Boston, Seattle and Denver.
SOURCE 451 Research
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