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Mergers & Acquisitions within Automation Platforms saw a distinct pattern in 2022 – companies were acquiring to either strengthen their capabilities or expand their reach in specific industry verticals or horizontal segments. After the pandemic gave rise to the growing global demand for Automation products and services, the Automation space saw immense increase in deal activity.
With enterprises in a race to enhance customer and employee experience, technology providers are leveraging M&As, which is proving to be a critical tool to increase product offerings and bolster capabilities of existing platforms. In 2022, 20% of the global M&A activity was attributed to the technology sector, with over 60 transactions taking place in the Automation space.
Even though there was a deceleration in overall numbers in 2022 compared to 2021, Intelligent Virtual Agents (IVAs), Natural Language Processing (NLP), and Conversational AI technologies were the key driving segments for M&As in 2022. M&As witnessed a surge as Automation platforms focused on strengthening their stacks and incumbent software firms focused on investing in higher order experience toolkits for their customers.
Expanding into target industry verticals and horizontal segments was also one of the core reasons for Automation platforms to set their sights on specialist Automation firms for Mergers & Acquisitions.
In this report, we explore the Mergers and Acquisitions of 2022 in the Automation Platforms space, the acquisition strategies, and what this could mean for the Automation sector as a whole. Our analysis includes:
• Marquee acquisitions made in 2022
• Types of acquirers and corresponding strategies
• Valuation multiple analysis of Automation platform companies
• Stock price movement of small, medium, and large public-listed firms
• Trends that will impact M&A deals in the future