June 2021

Access to materials included in this newsletter may be limited to Red Forest Capital search funds. Previous editions can be found at redforestcapital.com. 

Happy June which is also Adopt a Cat, Great Outdoors, National Fresh Fruit and Vegetables, and Pride Month! Following are a number of resources to help you in your pursuit of an acquisition. Contact us if and when we can be of help. In the meantime, please find a selection of resources below to support your efforts. 

ECONOMIC CONDITIONS

• Surging debt appetite boosts muni bond funds & attracted $39B

• The Federal Reserve reverse repurchase (RRP) loans are raising concerns that short-term interest rates could actually fall below zero

• Senate introduced a bill to prohibit companies with a market cap of $100+B to acquire or merge

• May Consumer Confidence down slightly to 117.2 in May which may be due to inflation expectations and reduced further government support

IMPLICATIONS OF PROPOSED TAX CHANGES

• Following is a summary of the proposed budget and tax rate changes. The budget has not been approved by Congress, but the following are a selection of considerations for Business Owners motivated to sell before January 1, 2022, when new tax rates are likely to take effect. 

• For taxpayers whose income exceeds $452,700 (or $509,300 for couples filing separately), the 2022 marginal income tax rate may increase to 39.6% (from 37%) 

• For taxpayers whose income exceeds $1MM (or $500,000 for couples filing separately), capital gains may increase to 43.4% (from 20%) if the asset is held for more than a year. 

• Short-term and long-term capital gains are expected to be the same rate 

• Add the 3.8% Medicare surtax or net investment income tax (NIIT) and Sellers could be met with a 48+% capital gains tax rate

INTERESTING

• Four myths about building a software business

• A map of the “Creator Economy” a useful primer about NFTs

• Do your G&A functions fit your growth trajectory?

• Next 100 Years in Business, Science, and Investing

• The Current State of Retirement Income

• 96% opt-out of app tracking. Avoid tracking with uBlock (desktop browsers), 1Blocker (iOS), Firefox Focus (mobile), Barracuda CloudGen (iOS and Android), Brave (mobile and desktop) among others. For Apple iPhone users, opt-out to avoid being tracked.

• 65% of consumers would end their relationship for a single data breach

• Lessons Learned by Becoming Company President in 2020

• Six kinds of product-market fit

• Your negative emotions are hurting your team. Try empathy instead

• Assistive tech for people with disabilities is growing but fundraising is difficult. A topic akin to the search acquisition, T-Base Communications

LIGHTER FARE

• After Zoom, M&A dealmakers hit the road as COVID-19 subsides

• A Simple Compliment Can Make a Big Difference

• Fighting Bias in Machine Learning

• COVID-19 scatters tech hubs for young talent

• In the ‘Star Wars’ Economy, One Thing Doesn’t Pay

• Read “Digital Body Language”

• Read “How to Use Data Visualization to Make Better Decisions”

• How Florence Nightingale used data visualization to save patients

• How to Solve Impossible Problems: Lateral Thinking Reasons

• Why Veterans Excel At Running Small Businesses

• How Afrika is Empowering African Entrepreneurs Through Mentorship

• Our Memory Is Even Better Than Experts Thought

RESOURCES

• SBAs Shuttered Venue Operators Grants (SVOG) provides assistance to event producers, promoters, and venue operators

• SBAs Restaurant Revitalization Fund (RRF) provides assistance to restaurants, bars, caterers, inns, etc. 

• The COVID-19 Economic Injury Disaster Loans (EIDL) provides relief to Ag businesses and nonprofits 

• Recent asset-based loan transactions and other senior secured transactions can be found on ABL Deal Charts

M&A, PRIVATE EQUITY & INDUSTRY UPDATES

• In Q1 2021 4,078 deals closed for $493.4B up 124% Year over Year (YoY) Deal volume increased in Technology, Finance, B2B, Health Care, and Manufacturing. Deal volume decreased in Government. 

• PE accounted for ~37% of Q1 2021 global M&A (down 4% QoQ)

• Dry Powder estimates remain at $1.7-1.6 trillion 

• EV/EBITDA multiples down to 9.3x from 10.6x in 2020

• A Record-Breaking ‘Frenzy’ Of M&A Activity Is Underway

• McK’s Private Markets Review, shows PE outperforming other assets

AEROSPACE & DEFENSE

• Aerospace & Defense suffered during COVID and analysts project a slower recovery.  Consider targets that support emerging technologies, tech modernization & cybersecurity, unmanned assets, space, and supply chain efficiency. 

• Belcan Acquires Victor42, a provider of intelligence training, and IT

• Noblis acquired McKean Defense, a US Navy tech company

• Ondas Holdings to Acquire American Robotics, a Robot-as-a-Service company for $71MM

• Precision Aviation Group Acquires Keystone Turbine Services

• Kerbal Space Program to Acquire Neeltran, manufacturer of DC power systems, rectifiers, and transformers for $16MM

• Ondas acquires American Robotics and ‘rugged, real-world’ drones

• ThayerMahan Acquires Wingman Defense, an artificial intelligence startup

AGRICULTURE & FOOD

• Agriculture, as an industry, received record stimulus and subsidies in 2020, some as investible capital. Consider companies that support automated sorting, remote monitoring, and robotics or alternate proteins like seafood and farmed fish. As an example, fish oil has seen increased demand for health benefits while 88+% of fish oil is farmed. 

• Farmers Join Push to Harvest the Benefits of 5G

• Hershey to Acquire Lily's Confectionery Brand

• Apeel Sciences acquired ImpactVision, developer of software to secure global the food system

• DWF to Acquire Empire Services, a metal recycling company for $14MM

• GrubMarket Acquires Vaccaro & Sons, distributor of produce and dairy

• HempFusion to Acquire Lief Brands, CBD, and wellness brands for $4MM

• HUMBL to Acquire HMS Health, medical cannabis wholesaler for $28MM

• Morgan Stanley acquires Nivel Holdings, a manufacturer of aftermarket parts for personal, utility terrain vehicles and heavy-duty equipment

• Nestlé Health Science Acquires Nuun

• Pentair acquires Ken’s Beverage for $80MM

• Persistent Systems to Acquire Picky Bars, provider of nutritional supplements for $12MM

• PlantX to Acquire Little West, producer of small-batch, cold-pressed juices with no preservatives, concentrates, or added sugars

• Stage acquires Haystack Mountain Cheese, an award-winning creamery

• Sweet Earth Acquires Rights for Pure America Hemp Brand and Enters Into Manufacturing Agreement With Pure Products

• Utz Brands to acquire Festida Foods, manufacturer and provider of co-packing services for tortilla chips, corn chips, and pellet snacks for $41M

• Zensar Technologies to Acquire Foods of New Mexico for $20MM

AUTOMOTIVE

• Tesla competitors (i.e., Audi, Ford, Volkswagen, and Lucid) aired ads during Elon Musk’s “SNL” appearance

• Ackroo to Acquire InterActive DMS, provider of used car dealer management software for $1MM

• Bridgeline Digital to Acquire SimplePart, provider of e-commerce services to automotive manufacturers and dealers for $45MM

• Euromoney Institutional Investor to Acquire PermaPlate Film, a distributor and installer of automotive window films for $30MM

• Landsea Homes to Acquire J.P Kush & Associates, provider of insurance plans to individuals, families, and businesses for $1.95MM

• Safelite Group Acquires Troy Auto Glass

• XL Fleet to Acquire World Energy Efficiency Services, a provider of energy management and efficiency solutions for $16MM

B2B 

• Accordion Acquires Mackinac Partners, a financial advisory firm

• Amdocs to Acquire Sourced, an IT consultancy for $75MM

• Clarivate to Acquire ProQuest, a consultancy serving Science & Research

• ettain group Acquires Bradford & Galt, an IT staffing and consulting firm

• Execupay acquires Kansas based Paydayz Payroll

• Genstar Capital To Acquire Vector Solutions, provider training, risk management, and workforce management software

• Ondas Networks Acquires Gearbubble, a platform serving charities, artists, and designers for $3MM

• OneTrust Acquires Shared Assessments, provider of best practices, education, and tools to third-party risk assurance

• Yangaroo to Acquire StratoDem Analytics, provider of Data Science as a Service for real estate investors and developers for $24.4MM

• Versus Systems to Acquire M3bi, an information technology company specializing in big data analytics implementation services for $30MM

CONSUMER 

• Consumer Spend on Gaming Hardware totaled $4.5B, up 62% YoY

• BRS & Co. Acquires Majority Control of Shearwater Research, manufacturer of diving computers and rebreather electronics 

• TerrAscend to Acquire Cruisers Yachts, manufacturer of premium yachts for $63MM

EDUCATION

• In light of Covid-19 and demand driven by the need of upgrades, total global education spend is expected to reach $404B by 2025 representing a 16.3% CAGR, or 2.5x growth from 2019 - 2025, according to Holon IQ,an education research company. 

  M&A transaction volume has also increased. According to Berkery Noyes, total transaction volume increased 51% QoQ in Q2 2020 with strategics accounting for 76% of M&A year-to-date. Total transaction value quadrupled to $4.2B QoQ in Q3 2020. The ubiquity of technology has turned EdTech into an asset class. 

  According to the DOE, pre-COVID spend is up slightly with K-12 and postsecondary spending $81.2B in 2019, from $70.2B in 2018. Budgets are constantly an issue as schools are forced to spend money on cleaning supplies, PPE, and other COVID-related measures. Consider targets that support literacy, adaptive and hybrid learning. 

• Fiveable Acquires Hours, A Virtual Studying Platform

• Kahoot! to Acquire Clever, a leading US K-12 EdTech learning platform, accelerating its vision to build the world's leading learning platform

• McGraw Hill Acquires Triad Interactive, Developer of SIMnet, an Online Training Platform

• The Stepping Stones Group acquires The Futures Health Group, a therapeutic and behavioral company serving schools

• Switch to Acquire Data Foundry

• Welsh, Carson, Anderson & Stowe acquired Absorb Software, a learning management platform for $500MM

ENERGY

• Recovery has been slow after 100+ upstream and oilfield services bankruptcies in 2020. Divestments in higher-carbon assets and acquiring lower-carbon oil and gas, are expected to continue yet energy demands will remain. In response, the BLM plans to build a 350-megawatt solar panel farm with the ability to power 90,000 homes. 

• EQT Acquires Alta Resources Development for $3B

• Novacap Acquires Interest in Globe Electric Company

• SparkCognition Acquires Ensemble Energy, provider of AI software serving Renewable Energy

• UL Acquires Clear Sky Analytics, a solar asset performance management platform

ENGINEERING & SCIENTIFIC SERVICES 

• Ansys Acquires Phoenix Integration and enables model-based engineering (MBE) software

• Brightstar Capital Partners Acquires ERC Incorporated, a Leading Provider of Mission Critical Engineering and Consulting Services

• Godspeed Capital Management acquires Prime Engineering for $4.1MM

• SemiTorr Acquires McKenna Engineering, a distributor gas, liquids, and dry bulk solids

• Ulteig Acquires NLS Engineering

ENVIRONMENT & RELATED

• The US is now a half-degree Celsius warmer than a decade ago, according to yearly normal temperature reports and California’s drought continues. Consider targets that disinfect, monitor, transport water to private companies in addition to the following. 

• The Coming Impact of ESG on M&A from Harvard Law

• Recent M&A Transactions Involving Sustainable Asset Management FirmsESG in Power and Utilities M&A

• KKR acquires ERM, a Sustainability Consultancy Firm

FINANCE & INSURANCE

• The Fed is accelerating work on a digital dollar. Consider targets well positioned to address the risks for businesses and household associated with digital currencies and a fragmented payment system, for example; Anti Money Laundering Education & Training, Fraud Prevention & Insurance, Money Services Business Compliance, Volatility Protections

• Worldwide chip shortage could hurt payment card issuance

• Accelerant Acquires Kinnell Holdings Insurance Group

• AccuTitle Acquires TrackerPro, provider of a paperless office solution for the title insurance industry

• Arthur J. Gallagher Acquires Garner & Glover, Koff, Mutual Brokers, Total Safety Consulting & Willis Towers Watson Reinsurance, Specialty Retail

• Bill.com Acquires Divvy, a spend management software, and corporate card provider

• Brink’s acquires a privately-owned provider of ATM services company

• CleanSpark Acquires Additional S19-Pro Bitcoin Mining Rigs to Further Enhance Energy Initiative

• F. Schumacher & Co Acquires Backdrop

• FirstSun Capital Bancorp to Acquire Pioneer Bancshares, Inc.

• Nxchange acquires blockchain-based private market, Bondex

• Premier Financial Services, LLC Acquired by 1st Financial Bank USA

• Simplicity Group Acquires Guardian Financial Group

• Smart Eye to Acquire Fortification Capital, a registered investment dealer for $1.125MM

• TechX Signs to Acquire Fiat-to-Crypto Merchant Services Gateway XPort Digital

FRANCHISE

• 7-Eleven Acquires 3,800 Speedway Stores & Sells 293 Stores

• Honors Holdings Acquires 24 Orangetheory Studios

• Lapels Dry Cleaning Acquires Martinizing Dry Cleaning, 1-800-DryClean, Pressed4time, Dry Cleaning Station and Bizziebox

• Muscle Maker Acquires Pokemoto, A Hawaiian Poke Concept

• Senior Care Authority Acquires "Beyond Driving with Dignity" Program The Joint Corp Acquired Eight and Opened Two franchise clinics

• Sonesta Acquires RLH Corporation (aka Red Lion Hotels)

HEALTH CARE

• Deals continue as companies return focus to long-term initiatives and improvements highlighted by COVID. Additionally, consider targets and second-order effects of the Secretary of Health and Human Services, Xavier Becerra, focus on rising healthcare costs where practical monopolies exist

• Amazon Care, a telehealth service now available to Washington-based employees is expected to expand to all US employees this summer

• Virtual Roundtable. The Evolution of the Healthcare Industry

• Allergan acquires Soliton, producer of a device and non-invasive cellulite treatments

• Acasti Pharma to Acquire Grace Therapeutics, a drug delivery treatment for rare and orphan diseases for $64MM

• AMN Healthcare to Acquire Synzi Holdings, a communication platform that enables providers to use video, text, SMS, messaging for $43MM

• AMSC to Acquire OBP Medical, a medical device company that develops and markets single-use illuminating medical devices for $60MM

• Averhealth Acquires Aspenti Health

• Aya Healthcare launches bespoke MSP business unit, acquires Dawson Healthcare

• BMC Protect Acquires 360 Medical Supply

• Cedar Announces Agreement to Acquire OODA Health a Consumer Financial Experience company

• Tegria Acquires Colburn Hill, a Revenue Cycle Management company and a sale represented by yours truly

• Clearlake Capital-Backed symplr To Acquire HealthcareSource From Francisco Partners

• CooperSurgical to Acquire OBP Medical, a medical device company that develops and markets single-use illuminating medical devices for $60MM

• CPSI acquired TruCode, a provider of medical coding software

• Connect America Acquires Philips Aging and Caregiving Business

• Cynosure to Acquire MyEllevate, and Facial Rejuvenation Treatment

• DarioHealth Acquires Digital Behavioral Health Platform wayForward

• Discovery Life Sciences Acquires Targos, and Tissue Biomarker Services

• Gamma Biosciences Acquires Mirus Bio, Provider of Gene Therapy and Next Generation Vaccines

• Ginkgo Bioworks to acquire Soaring Eagle Acquisition, an operator of a cell-programming platform

• GreenLight Biosciences Acquires Bayer's topical RNA Intellectual Property portfolio protecting against Varroa mites and threats to bees

• Kepro Acquires IMEDECS, provider of health plan dispute resolution 

• Medline to Acquire Hudson RCI respiratory products from Teleflex

• New England Anesthesia Associates acquired CRH Medical anesthesia services

• New England Biolabs to acquire Fluorogenics Limited

• PerkinElmer acquired Nexcelom Bioscience, a manufacturer of cytometry products for cell analysis

• Premier Research Acquires Camargo Pharmaceutical Services

• Professional Physical Therapy Acquires Freehold Physical Therapy

• Redmond Regional Medical Center acquires AdventHealth, a subsidiary of HCA and provider of inpatient and outpatient healthcare services

• Rx Infinity acquired CloudMD, a healthcare provider intended to distribute specialty drugs and offer patient assistance

• Sagely acquired Uniguest, a developer of a digital healthcare software designed to improve elders’ well-being

• SFW Capital Partners acquires Pion, a provider of analytical instrumentation for formulation development and quality control in the life sciences

• Spira acquired Galileo Health, a provider of telemedicine services

• TEAM Technologies Acquires PDC, a Skin-Contacting Technologies and Infection Prevention Products Specialist

• TRIGR Therapeutics acquired Compass

• Therapeutics, a developer of therapeutic drugs intended to treat cancer

• Visiting Nurse Association acquired Amedisys, a provider of home health and hospice care services

• Waller Wellness Center acquired Forum Health, an operator of a healthcare wellness center

• WCG Acquires The Avoca Group, a life sciences consulting firm supporting biopharma, biotech, CROs, and clinics

• Wenco International Mining Systems acquires SmartCap, the world's leading fatigue monitoring wearable device

• Wisconsin Pharmacal Company Acquires ResQRinse Nasal Irrigation Device

HOSPITALITY, TRAVEL & TOURISM

• InterContinental Hotels Group predicts a busy summer

• Car-free streets have seen more consumer activity during COVID-19 than other zones. Will the pandemic-era traffic changes become permanent?

• Quench acquired Eastern Pure Water, a dealer of Wellsys-branded point-of-use drinking water systems

• Quench acquires Magic Pure, a sparkling water specialist

INDUSTRIALS & MANUFACTURING

• Deal volume increased in Q1 over the previous quarter.  Consider targets that support niche manufacturers, that streamline processes (i.e. returns and refurbishment), that improve supply chains, that provide re-skilling and safety training, and may benefit from the American Jobs Plan. 

• Airxcel Acquires Custom Air Products & Services, a specialized fabrication manufacturer of HVAC equipment

• CEVA to Acquire Intrinsix Corp, an advanced semiconductor design services company for $33MM

• Evergreen Cooperatives' Fund Acquires Intellitronix, producer of LED automotive aftermarket digital and analog gauges

• Fralock Holdings Acquires Ceramic Tech Inc.

• Intervala Acquires NEOTech Manufacturing Business

• MEI Rigging & Crating Acquires Houston Crating

• Novolex Agrees to Acquire Flexo Converters USA, Inc.

• PrimeSource to Acquire Nationwide Industries, Expanding Portfolio of Specialty Residential Building Products

• Prince International Acquires Ferro Corporation

• Reedy Industries Acquires Standard Plumbing & Heating/Sheet Metal Crafters

LEGAL & RELATED

• CEVA to Acquire Intrinsix, Expanding its Offering to Include Full Turnkey IP Platforms

• DWF to Acquire Barnescraig & Associates insurance claims management for $3MM

• Gimmal acquires Sherpa Software, expands its data governance and eDiscovery capabilities

• Mitratech Acquires Global Legal Marketplace AdvanceLaw

• Warburg Pincus to acquire NetDocuments Software, a legal tech company

MARKETING & ADVERTISING

• Exterior’s outdoor media property consolidation

• Acasti Pharma to Acquire Monster Creative, a creative advertising agency in the entertainment space for $8.5MM

• Catena Media to Acquire Sports betting systems and games for $40MM

• Fox Corporation to Acquire Outkick, a digital media platform focused on sports, opinion, politics, and pop culture

• Geben Communication Acquires Content Marketing and Influencer Agency Women Online

• Globant Acquires The European Digital Marketing Consultancy Firm HABITANT

• HungerRush Acquires Online Omnichannel Ordering and Digital Marketing Software Company 9Fold

• Invoca to Acquire DialogTech, provider of actionable marketing analytics for businesses that value phone calls for $100MM

• Riodan, Lewis & Haden, & Salesforce Ventures acquires Astound Commerce, a digital commerce experience firm with a focus on brands

• Salsify acquires Alkemics to expand its Commerce Experience Management platform for the Digital Shelf

• The Social Plus Acquires irevu, Expanding Marcom SaaS Offerings

• Sensor Tower acquires Pathmatics, a market intelligence company

• SparkPost Acquires Taxi for Email, Expanding Its enterprise-focused Email Platform

• TCI Entertainment to Acquire Stocket, a mobile app to combine game experiences with e-commerce for $11MM

• Versus Systems to Acquire Xcite, an interactive media platform for online audience engagement for $21MM

• Vungle Acquires TreSensa Technologies, a mobile ad creative technology company

• Yangaroo to Acquire Digital Media Services, provider of asset distribution and content management services to advertisers, agencies for $5.5MM

MEDIA & ENTERTAINMENT

• Consumer Spending on Video Game Products Up 30% to $14.92 billion when compared to Q1 2020

• Netflix claims 20% of the streaming market

• Bragg Gaming to Acquire Spin Games, developer of HTML5 gaming content and smart solutions for $30MM

• Future acquires Marie Claire including Woman&Home and GoodToKnow

• Game Taco Acquires Skill-Game Pioneer WorldWinner From GSN Games

• LiveXLive To Acquire Modern Drummer Publications

MINING & NATURAL RESOURCES

• Iron ore futures up 15%; Steel prices up 12%, 3x the 20-year average; and copper up 20% during the past month

• Pandora, the world’s largest jeweler, announced plans to replace mined for lab generated diamonds

• Lumber is up 280% since the onset of the pandemic

• Paper Excellence Acquires Domtar, provider of fiber-based products to its existing paper supply portfolio

REAL ESTATE & RELATED

• Costs are soaring with lumber prices up over 180% YoY and shortages in steel, copper, pipe/PVC. Ongoing labor shortages are forcing higher bid prices, scheduling challenges, and risks for project deadlines. March home prices are up 13% YoY, according to Case Shiller. Consider specialty chemicals (e.g. adhesives) used in building material processing. Also, consider targets that provide HVAC services and work back in the value chain from customers that consider temperature control as mission-critical, for example; Hospitals, Pharma Clean Rooms, Restaurants, Commercial & Ghost Kitchens, Data Centers, etc.

• Pool chlorine prices are expected to increase by 70+% after a fire took out 1 of 3 major suppliers

• 360training Acquires Van Education Center To Expand Its Real Estate Education Reach

• Arcadia Biosciences to Acquire AMECO, a provider of construction equipment, scaffolding, small tools management for $73MM

• Black Knight Acquires eMBS, a Mortgage Data and Analytics Firm

• BMS CAT Acquires Stratton Restoration, provider of emergency services including both fire and water damage remediation and restoration

• Cinch Home Services Acquires Fixd, a home repair, and warranty business

• HomeSquare Holdings acquires Seaport Electric, an electrical services company

• Landsea Homes to Acquire Vintage Estate Homes, builder of high-end energy-efficient homes in Florida and Texas for $55MM

• Pye-Barker Fire Acquires Total LifeSafety

• Rinse Acquires ButlerBox, dry cleaning and laundry provider specializing in locker-based service with multifamily and commercial office

• Service Champions Group Acquires Hobaica Services, an HVAC provider

• Summit Homes Acquires Berkeley Building, a residential home builder and developer in Idaho

• TK Elevator acquires Albany Elevator, a leading provider of maintenance, repair and installation services

• US LBM Acquires Higginbotham Brothers, a building products dealer

• Voyager Space Holdings Acquires X.O. Markets, provider of commercial space utilization services

RETAIL, TRADE & WHOLESALE

• ~1 in 3 new stores opening is a Dollar General with 3,597 retail chain openings announced to date

• The Future of Stores: Why Digital Pioneers Allbirds and Shopify are Investing in Physical Retail

• How E-Commerce Fits into Retail’s post-pandemic future

• Leaked Walmart memo highlights challenges facing retail and competitors like AMZN, TGT, & Instacart

• Ames Watson Acquires Iconic Retail Chain, South Moon Under

• Centre’s MacNeill Pride Group Buys GCI Outdoor

• Centroid Investment Partners acquires TaylorMade Golf Company

• Lazydays Holdings, Inc. To Acquire B. Young RV

• NearU Services Acquires Leading Home Services Contractor, Energy Savers, Expanding Service Capabilities into Georgia and Alabama

• NearU Services acquires Mountain Air Mechanical Contractors in Asheville bolstering statewide service capabilities in North Carolina

• Nextran Truck Centers Acquires Westfall-O'Dell Truck Sales

• Outdoor Living acquires Geo. Schofield, hardscapes distributor specializing in natural stone

• Resideo Acquires Shoreview Distribution, distributor of professional audio, video, lighting, display, and broadcast equipment

• Shopsuite acquired Fashionchick, an operator of an online retail platform designed to buy and sell fashionable products

• PayPal acquired Happy Returns, a company that provides logistics software and services to online retailers flooded with returns

• Walmart will acquire Zeekit, a startup that lets shoppers virtually try on clothes without going to a store

TECHNOLOGY

• B2B Technology Up 4% to $24.1 billion in the first quarter of 2021 compared to Q1 2019. Software (27% of Sales) up 3%, Hardware up 4%

• Meet DarkSide, the media-savvy startup offering "ransomware-as-a-service" to help an illicit market of hackers extort large businesses.

• Absolute Software to acquire NetMotion Software, a provider of connectivity and security solutions for $340M

• Bridgeline to Acquire Hawk Search for $11.9MM

• DataRobot Buys Zepl, a self-service data science notebook service for data scientists

• Cisco to Acquire Kenna Security to Deliver Industry-Leading Vulnerability Management

• Cisco To Acquire Socio Labs to Power the Future of Hybrid Events

• Cisco to Acquire Sedona Systems, a creator of an IP/optical converged control platform for $100MM

• Demand Science Acquires TrustedOut, Adding AI-Powered, B2B Content, and Data Intelligence to Its Global Revenue Intelligence Platform

• Demandbase to Acquire InsideView and DemandMatrix, Launches The Demandbase Data Cloud and Sales Intelligence Cloud

• Docupace Acquires Compliance and Advisor Compensation System jaccomo

• EPAM Acquires Just-BI to Reinforce Leading Position as a Global Business Intelligence Services Provider

• Higher Logic Acquires Vanilla, cloud-based community software company

• IBM to Acquire Turbonomic, Comprehensive AIOps Capabilities for Hybrid Cloud

• Ideanomics to Acquire US Hybrid, a provider of components, drive trains, and fuel cells to medium and heavy-duty commercial fleet operators

• Inpixon Acquires The CXApp, a Leading Smart Workplace App and Hybrid Events Solution Provider

• Invoca Acquires DialogTech, a Conversation Intelligence Platform

• Involta Acquires SecureData 365 Data Center

• Forcepoint Acquires Cyberinc and remote browser isolation (RBI) tech

• Kakao Entertainment Acquires Tapas and Radish Media, storytelling platforms

• Liquid Web Family of Brands Acquires Impress.org and GiveWP

• Lone Wolf acquires LionDesk and HomeSpotter technology suite

• Medicus IT Acquires Managed Services Provider HITCare

• Mindtree to acquire NxT Digital Business of L&T

• Netlify Acquires FeaturePeek and Launches Next Generation of Deploy Previews to Streamline Collaboration for Web Teams

• NexTech AR acquires Threedy.ai, a 3D modeling solution for $10MM

• Noble Systems acquires Aspect Software for $1B

• People.ai Acquires Hero Research 

• Perforce Acquires 21 Labs, a Scriptless Mobile Testing Provider

• Persistent Sytems to Acquire Sureline Systems, provider of cloud migration and disaster recovery for $2.5MM

• SecureLink Acquires Maize Analytics, a provider of data governance services that address data security risks

• Sectigo Acquires SiteLock, provider of Web Security

• ServiceNow acquires LightStep, an IT service management solution

• Smart Eye to Acquire Affectiva and emotion-recognition tech for $74MM

• SnapAV to Acquire Access Networks, a networking solutions provider

• Snyk Acquires FossID, a Security company

• Targus to Acquire Hyper, provider of portable power, data storage, and connectivity products

• TCI Entertainment to Acquire Relationship Science business development software for $7.3MM

• TeamSupport Acquires Global Chat Leader SnapEngage

• TransPerfect Acquires Skilltelligence AI Data solutions

• Verbit Acquires VITAC captioning products and solutions

TELECOMMUNICATIONS

• 1,300+ SpaceX Starlink satellites are in space, with 60 satellites launched in May and 500,000+ subscribers

• AST to acquire New Providence Acquisition Corp for $460MM

• AvaLAN acquired by Dover, wireless and wired ethernet solutions

• Blackstone Acquire Sabre Industries energy and teleco infrastructure provider

• Boingo Wireless to be acquired by Digital Colony for $850MM

• Crestone Services Group Acquires Specialized Communication Services, a telecom infrastructure service provider

• HKW announces acquisition of CIS, a cybersecurity company

• Koch to Acquire TNS, connectivity, and interoperability provider

• OneWeb to Acquire TrustComm, a satellite communications provider

• Pavlov Media Acquires the Operations of Clarus Broadband

TRANSPORTATION & LOGISTICS

• Growth continues with increases in consumer spending and industrial growth. Consider targets that support 3PL, freight forwarding, warehousing - and targets within proximity to large cities or concentrated populations (e.g., Lehigh Valley, Pennsylvania). Alternatively, consider targets that support automation, supply chain efficiency or electric fleets, and the construction of roadways, bridges, and may benefit from the proposed American Jobs Plan. 

• eCommerce mega-warehouses, a smog source, face new pollution rule

• 1,1K+ containers fell in the sea, following a 7-year high of 3.1K in 2020

• Alinda Capital Partners Acquires ACL Airshop, a provider of unit load device services to the air cargo industry

• American Highway Acquires Highway Materials, manufacturer and supplier of infrastructure products to highway contractors

• E2open Purchases BluJay Solutions, a software provider that works with shippers, logistics service providers, and freight forwarders

• JASCI Acquires NextShift Robotics to Power Ecommerce Logistics

• Performance Food Group acquires Core-Mark for $2.1BN

• Roambee Acquires AI Firm Arnekt to Accelerate AI-Powered Supply Chain Visibility

• Sobel Network Shipping acquires Sunshine Services International, provider of marketing and sales cargo services for Airlines

VETERINARY 

• Acumen Health Holdings acquired Ramard, a producer of pharmaceutical-grade ingredients for animal health products

• Apex Partners acquired Nulo Pet Food, an operator of a chain of retail outlets intended to provide food products for dogs and cats

WASTE MANAGEMENT & RECYCLING

• Only 9% of all plastic manufactured has been recycled into new plastics. Another option: turning plastic back into the oil it was created fromAmerican Trash Management acquires Washington equipment firm

• Aurora Capital acquires Curtis Bay, a medical waste provider

• Battle Motors acquires Carrier Crane, a vocational vehicle manufacturer with a presence in recycling and waste markets

• Biffa acquires Viridor to expand collection and recycling capabilities

• Circon acquires Water Integrated Treatment Systems

• Circon Environmental acquires Bealine, operator of non-hazardous CWT facility serving Houston

• DAK Americas seeks to acquire CarbonLite’s Pennsylvania PET recycling facility for $96MM

• Domtar to be acquired by Paper Excellence

• DTG Recycle acquires Kleensweep's collection and recycling division

• GFL acquires Terrapure Environmental for $743.8MM

• Green Energy Biofuel acquires ReSoil compost facility to provide Green Energy Biofuel with a beneficial outlet for organic solids

• Landfill gas company acquires NR3, a North Carolina-based producer of fuels made from refined agricultural waste streams

• Leonard Green acquires Stella Environmental, provider of outsourced transfer station management services to the municipal solid waste industry

• Merdian Waste acquired McConnell Waste Systems

• Meridian Waste acquires Eco Waste Services to add construction site service lines of business

• Meridian Waste acquires Trash or Treasure

• Unbounce acquired Snazzy AI, the AI-powered copywriting tool

• Wheelabrator to acquire Tunnel Hill Partners