Industry Reports

Q1 2019
Macroeconomic tailwinds including the booming economy and increased training needs caused by the lack of qualified workers in the job market have propelled merger and acquisition activity in the eLearning, Corporate & Professional Training industry. Additionally, turnover from the baby boomer generation to millennial workers has increased training needs, specifically in areas of management.
Q1 2019
Secular tailwinds, including increased industrial automation, the application of smart building technology, the proliferation of video consumption, and sophisticated bandwidth capabilities, have propelled the Interconnect Components industry to a period of rapid growth. As the transmission and securing of data across these end-markets has become more complex, key fiber and copper cabling and connectivity solutions are required to successfully facilitate the movement of data.
Q4 2018
The Payment Processing industry has been supported by robust macroeconomic tailwinds and the rise in demand for value-added, real-time payment solutions. The global Digital Payment market is expected to grow to $86.8 billion by 2023, increasing at a compound annual growth rate of 18.0%, according to Research and Markets. Emphasis on consumer preferences has fueled consolidation as larger industry operators target companies that provide instant payment solutions.
Q4 2018
The global Security market is anticipated to reach $167.1 billion by 2025, representing a compound annual growth rate of 10.2%, according to Grand View Research. Profound industry growth has primarily been driven by the need to integrate and enhance security capabilities in the wake of global terrorism and public safety concerns. Increased industry competition as a result of heightened demand and new technological capabilities have supported premium valuations as private equity-backed companies continue to consolidate.
Q3 2018
Significant merger and acquisition activity in the Value-Added Distribution Industry has continued through year-to-date (YTD) 2018 on the heels of prolonged industrial and manufacturing expansion, shifting consumer preferences, and the ongoing proliferation of technology-based operating solutions. With 80 announced or closed transactions, YTD 2018 activity is on pace with that of 2017. Private equity continues to maintain a significant share of deal activity and has accounted for 37.5% of YTD transactions in the space.
Q3 2018
The record-breaking US bull market, characterized by historic levels of disposable income, rising consumer sentiment, and a 5.2% year-over-year increase in consumer expenditure, has driven an upswing in the Payment Processing industry. Expanding consumption coupled with the shift toward real-time, omnichannel payment processing systems has allowed niche companies to emerge and capture market share.
Q3 2018
This year, companies are fighting for top talent in the US as the number of job openings eclipsed the number of job seekers for the first time on record.  The tight labor market has emboldened workers to quite their job, with or without another opportunity lined up, with little fear of long-term unemployment.  According to the Bureau of Labor Statistics (BLS), the number of workers leaving their jobs reached 3.6 million in July, surpassing prerecession levels.
Q3 2018
Within the Interconnect Components industry, merger and acquisition (M&A) activity has remained healthy through year-to-date (YTD) 2018. With 40 transaction announced or closed, M&A volume has approached that of YTD 2017 and is expected to challenge total volume experienced in 2016 and 2017 by year-end. Though M&A activity remains robust in terms of volume, Capstone Headwaters has identified bifurcation in the market.
Q3 2018
Merger and acquisition (M&A) activity in the Security Solutions industry has been robust through year-to-date (YTD) 2018 with 93 acquisitions announced or completed. While the first half of the year was defined by Ares Private Equity Group’s acquisition of Convergint (February) as well as Motorola’s acquisition of Avigilon (March,), the second half has mainly been driven by middle market deals.
Q2 2018
The Payment Processing industry continues to see robust merger and acquisition (M&A) activity, with 47 deals announced or closed year-to-date (YTD) compared to 41 in 2017.  The vibrant economy has boosted consumer confidence and spending power, which has increased demand for payment processing solutions.  Notably, three prepaid card companies (iPayment Holdings, Next Gen Gifting, and Gift Card Impressions) have been acquired in 2018, demonstrating the continued appetite for companies in this segment.  

Pages