201
16 Annuall Utah Deaal Review
The A
Annual Utah Deal Review
w is prepared
d as a courteesy to the Uttah business ccommunity bbased on our research and
d
analyysis of data frrom various sources
s
on dissclosed deals for
f Utah-bassed companiess.
Utahh M&A and private placeement activitty continues to be
stronng as Utah tak
kes the numb
ber one spot on
o the Forbess Best
Statee For Business list for the third
t
year in a row. Transaction
dollaar volume inccreased a totaal of 37% from $4.8 billiion in
20155 to $6.5 billlion in 2016,, which is atttributed to a 67%
increease in M&A
A transaction
n dollar vollume. Despitte the
increease in dollar volume, 2016
6 M&A transsaction unit vo
olume
decreeased 21% fro
om 169 to 134
4 transactionss.
&A transactio
ons between $5 million and
a $1
For ddisclosed M&
billioon, the averag
ge deal sized increased fro
om $77.6 milllion in
20155 to $145.2 million,
m
a sig
gnificant increease of 87%. This
increease is driveen by the inContact traansaction of $968
million; however,, excluding th
his transaction
n gives an av
verage
of $1115.8 million for 2016, an increase of 49
9% from 2015.
Privaate placementt unit volumee in Utah declined 35% in
n 2016
from
m 69 to 45 tran
nsactions, wh
hile dollar vollume declined
d 37%
from
m $1.36 billio
on to $862 million. Th
he average private
p
placeement for disclosed transaactions in 201
16 was $23 million
m
comppared to 2015 with an av
verage of $26 million, a slight
decreease of 12%.
onic Funds Source transacction, the Fin
nancial
Due to the Electro
Serviices sector led Utah’s deal activ
vity, followeed by
Techhnology & So
oftware. Togeether, the two
o sectors com
mprised 44% of
transactions. The top three mo
ost active ind
dustries durin
ng the past yeear
and C
Consumer/Reetail. Of the th
hirteen industries analyzed
d, all illustratted
capittal raising acctivity. Howeever, nine ou
ut of the thirrteen industriies
comppanies are con
ntinuously gro
owing in valu
ue.
total dollaar volume off M&A and ccapital raising
g
were Tecchnology/Softtware, Mediccal/Healthcaree,
a decline in unit volum
me in combinned M&A and
d
increasedd in dollar vvolume showiing that Utah
h
In shhort, Utah continues to seee remarkablee growth. CW
WC does nott materially w
weigh the deecline in privaate placemen
nt
volum
me as significcant, as stats within a sing
gle regional market
m
are alw
ways volatile,, particularly in Utah in thhe midst of an
n
extraaordinary grow
wth cycle driiven by tech and specifically enterprisse software w
which continuues to spin off second and
d
third generation companies as the market grrows. Utah’s unicorn per ccapita ratio iss high, and thhe most comm
mon complain
nt
we hhear in this staate is not custtomer demand
d, but the abiility to find quualified technnology workeers in what is a competitive
laborr market. Wh
hile a challeng
ge for growin
ng companies,, we consider that a high cllass problem for the regionn as a whole.
For additiional information or questiions, please co
ontact John F
Farr at [email protected].
Columb
bia West Cap
pital
Phonee: (480) 664--3949 Fax: ((480) 664-39552
www.colu
umbiawestcap
p.com
Utah Deal Summary By Industry
($ in millions)
$(1)
2016
%
#
$(1)
2015
%
#
Variance
$
#
% Growth
$
#
Technology / Software / Services
Medical / Healthcare / Biotech
Consumer / Retail
Business Services
Manufacturing
Construction Serv/ Homebuilding
Financial Services
Gaming / Leisure / Lodging
Electronics / Semiconductors
Telecom
Real Estate Services
Energy/Utilities
$1,392
830
602
229
352
285
1,484
400
376
41
61
492
21.3%
12.7%
9.2%
3.5%
5.4%
4.4%
22.7%
6.1%
5.7%
0.6%
0.9%
7.5%
57
33
28
21
7
7
6
5
5
3
4
3
$1,018
329
475
90
44
17
208
518
29
130
1,447
456
21.3%
6.9%
10.0%
1.9%
0.9%
0.3%
4.4%
10.9%
0.6%
2.7%
30.3%
9.6%
63
43
33
37
13
10
12
4
9
4
4
5
374
500
127
139
307
269
1,276
(118)
347
(89)
(1,386)
36
(6)
(10)
(5)
(16)
(6)
(3)
(6)
1
(4)
(1)
0
(2)
36.7%
152.0%
26.7%
154.0%
693.8%
1628.5%
614.6%
(22.7%)
1218.6%
(68.3%)
(95.8%)
7.9%
(9.5%)
(23.3%)
(15.2%)
(43.2%)
(46.2%)
(30.0%)
(50.0%)
25.0%
(44.4%)
(25.0%)
–
(40.0%)
Totals
$6,542
100.0%
179
$4,769
100.0%
238
1,773
(59)
37.2%
(24.8%)
*Excludes Real Estate, Mining, Energy Exploration, Project Finance, 144a placements and transactions smaller than $5.0 million.
(1) Includes only disclosed transactions amounts
TOP 10 2016 M&A DEALS:
($ in millions)
TOP 10 2016 PRIVATE PLACEMENTS:
($ in millions)
1:
2:
3:
4:
5:
6:
7:
8:
9:
10:
1:
2:
3:
4:
5:
6:
7:
8:
9:
10:
Electronic Funds Source LLC
$1,470
inContact, Inc.
968
Assurex Health, Inc.
410
Bell Sports Corp.
400
American Covers, LLC
340
Woods Cross Operating LLC
278
Headwaters Windows LLC acquires 3 companies
240
Critical Flow Solutions Inc.
214
Clear Link Technologies, LLC
207
Skullcandy, Inc.
176
APX Group Holdings, Inc.
InsideSales.com, Inc.
Health Catalyst, LLC
Great Basin Scientific, Inc. (OTCPK:GBSN.D)
Extra Space Storage LP
Finicity Corporation
Finicity Corporation
Lucid Software Inc.
FFG Global Holdings LLC
Doppler Labs, Inc.
*Excludes Real Estate, Mining, Energy Exploration, Project Finance, 144a placements
Includes only disclosed transaction amounts.
Columbia West Capital
Phone: (480) 664-3949 Fax: (480) 664-3952
www.columbiawestcap.com
$101
78
70
68
55
42
36
36
35
24