M&A Roundup – Late Summer 23

last updated:
M&A September 2023

M&A Roundup – Late Summer 23

last updated:

It’s been quite a while since we published a round-up of funding and M&A in the sector, but that’s not to say nothing has happened.

It’s been quite a while since we published a round-up of funding and M&A in the sector, but that’s not to say nothing has happened. We live in interesting times; to reuse an overused phrase, the economy, the impact of GenAI, a weak IPO market, and geo-political concerns alike have made for unsteady and unpredictable times, but what follows is a summary of what we have seen happening in the market. It’s not intended as a comprehensive listing, and for sure, we have missed some key deals along the way, but even so, I hope this provides some insight into the current state of the market.

  • Koln-based process mining vendor KYP.AI raised 17.5m Euro in a Series A round.
  • Docufree, the New York-based scanning company founded in 1999, acquired security and disaster recovery firm AIS (Advanced Imaging Systems) this month.
  • NYSE-traded public sector-focused Tyler Technologies acquired CSI (Computing System Innovations) in August to add data entry and document processing capabilities to its portfolio.
  • Cogniaze raised an $18m Series A round to expand its financial services document processing-focused business.
  • Apryse (aka PDFTron) acquired fellow PDF specialists Qoppa Software.
  • Document storage and records management vendor GRM Information Management acquired Atlantic Data and Records Management.
  • JAVLN, the insurance policy management platform vendor, acquired Australia-based Technosoft Solutions, best known for its OfficeTech product.
  • UK-based Apogee (owned by HP) acquired UK scanning bureau Datatron.
  • France-based automation firm Quadient acquired forms vendor Daylight (formerly FormHero)
  • Our old friends OpenText made a small acquisition in the form of the Irish process and project management firm KineMatik.
  • Acquisition group Dura acquired document management vendor Paperwise
  • NASDAQ-traded Research Solutions acquired search vendor ResoluteAI
  • Splunk the data monitoring and visualization firm was acquired by Cisco (see below)
  • And finally, Salesforce acquired AirKit.AI (think AI-powered CX apps) in late September

So, what do we make of it all? Well, that’s a great and challenging question to answer.  At one level, there are grounds for optimism; the recent mammoth acquisition of Splunk by Cisco for a whopping $28B may inject some life into the high end of the market, but then again, Q3 2023 is the worst quarter for deals since 2012. The fact that firms like KYP and Cognaize are raising solid Series A rounds may be grounds for optimism. But we have to balance that with the fact that there appear to be fewer small deals going through at the moment, even so, though there are some signs of a modest revival on the horizon. Maybe more importantly, we know that many mid-sized tech firms are looking to grow inorganically and are currently working on deals and identifying targets to approach. The current impasse seems to be (as usual) inflated value expectations from sellers and unrealistic bargain shopping by buyers. As always, the sweet spot is in the middle, and I have little doubt that we will see many more small deals concluded in the next quarter or two.

We are not and never will be an M&A brokerage firm, but we have a lot of experience in identifying partners for growth, firms to target for M&A, technical due diligence for investors right through to reviewing pitch decks. So call us if you want to invest, buy, or sell your tech firm!

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