Internet of Things: Top 5 Deals in 2023

November 21, 2023

Deal 1: Intel

On 7th February 2023, Intel disclosed the rates for seven sets of its senior unsecured notes, amounting to a total principal value of $11 billion (£8.97 billion). Intel intends to use the proceeds from this offering for multiple corporate objectives, such as potentially settling existing debt, funding operational expenses, and covering capital costs, to name a few.

Intel is recognised as one of the global leaders in semiconductor chip production based on revenue and was instrumental in creating the x86 series of instruction sets, a standard in many personal computers. Intel collaborates with industry leaders to enhance IoT outcomes by merging their efforts in edge compute, networking, and AI. By prioritising industry standards and partnering with ecosystem participants, they aim to introduce scalable, secure, and optimised solutions. 

Deal 2: ARM

On 13th September 2023, the company went public on the Nasdaq with the ticker symbol ARM, pricing its shares at $51 each. They sold 95.5 million shares, bringing the company’s total value to $52.33 billion. The company didn’t earn any proceeds from this offering, with the total revenue of $4.857 billion (£3.86 billion) going to the selling shareholders. Additionally, underwriters have the option to buy another 7 million shares if needed.

Arm Holdings owns and develops the ARM architecture (originally named Acorn RISC Machine), which powers 99% of global smartphone CPU cores. The company also dominates the market for other battery-operated devices such as wearables, tablets, and sensors.

Deal 3: Vivint Smart Home

NRG Energy purchased Vivint Smart Home for $2.623 billion (£2.18 billion) on 10th March 2023. This acquisition propels NRG’s goal of expanding its consumer-centric approach, establishing a dominant home services platform enriched by top-tier brands, unique insights, in-house technologies, and synergistic sales avenues.

Vivint Smart Home is a smart home company based in Utah, US. They specialise in offering advanced security and home automation systems, including innovative security cameras, sensors, adaptive lighting controls, and continuous monitoring and support.

Deal 4: Software AG

Silver Lake acquired Software AG in a public-to-private leveraged buyout (LBO) valued at approximately EUR 2.4 billion (£2.06 billion) on 15th September 2023. The financing for the transaction included a EUR 640 million term loan, a EUR 362 million term loan, and a EUR 100 million revolving credit facility, provided by anonymous lenders. Silver Lake now holds 85.1% of Software AG’s share capital and voting rights. With this acquisition, Software AG is poised to strengthen its strategic collaboration with Silver Lake, enhancing the company’s strategic execution.

Software AG is a global software company from Germany that specialises in enterprise software for integration, business process management, and big data analytics. Catering to over 10,000 corporate clients across more than 70 nations, it ranks as Germany’s second-largest software provider and is among the top seven in Europe.

Deal 5: ForgeRock

On 23rd August 2023, Thoma Bravo and ForgeRock confirmed the finalised acquisition of ForgeRock by Thoma Bravo. The all-cash deal, worth around $2.3 billion (£1.84 billion), was initially announced on October 11, 2022. Thoma Bravo has merged ForgeRock with its portfolio company, Ping Identity. This combination aims to better serve the evolving Identity and Access Management market with enhanced products and broader support. The consolidated company intends to swiftly advance identity security solutions for global businesses.

ForgeRock is a cutting-edge cloud identity firm. Their offerings encompass Identity Management, Access Management, Identity Governance, and AI-driven Autonomous Identity. Their income stems from recurring sources such as term licences, SaaS, and maintenance support, collectively termed as subscription revenue.

Talent Insight

“The top IoT deals of 2023 underline a focused trajectory towards security, integration, and scalability in the sector. This wave of investments and consolidations showcases a push for holistic solutions that blend different facets of IoT seamlessly. As the line between personal and tech life blurs, robust security and identity management grow in importance. In the recruitment space, I foresee a rising demand for experts in IoT security, integration, and AI-analytics. As the IoT landscape shifts, professionals skilled in balancing innovation with security will be highly sought after in this evolving digital age.”

– Charlie Fairbank, Managing Director

Published on 21-11-2023