SNP Reports Increase in M&A Projects in Q1 2017

Share Article

While the deal count has declined from 2016, the need for faster integration is climbing in order to fulfill shareholder expectations.

The number one reason for failed M&A projects is speed of integration.

SNP is reporting a globally increased interest in intelligently automated data migration related to M&A activity in the first quarter 2017.

Market trends show Energy and Power was the leading sector, clocking a 62% increase from the previous year. The Materials sector was second in volume, despite a decrease from 2016 levels. Rounding out the top 3 was Healthcare with a 61% increase year over year. Bringing up the rear were telecom, media, and retail, which saw a 48% decline for the previous year’s period.

The US took the lead in deal making, up 16% from 2016, while Chinese transactions plummeted due to strict regulation on transactions over $2 billion dollars.

Despite the activity, the truth is most of these deals will continue with the overall trend and fail to see shareholder value, and many of the deals will result in destroying it. Dr. Steele Arbeeny, Chief Technology Officer at SNP recently addressed the key reason for this.

“The number one reason for failed M&A projects is speed of integration. Whether I’m speaking with the CIO, CFO, or CEO of a company, they all want the same thing- the technology integration and data migration done as quickly as possible, without raising the risk threshold. This eliminates a critical hurdle in the deal, so there can be shareholder value realized” Dr. Arbeeny said.

SNP has developed a method that is used by the most successful organizations to streamline their M&A project timeline. An exclusive webinar for this topic will be held on July 27th. Learn more here "M&A in a Weekend Webinar"

About SNP

SNP helps companies transform business models and roll out new technologies. Its software and services make it easier to execute technical or commercial changes in global business applications. Together, SNP’s CrystalBridge and Transformation Backbone(r) constitute the world’s leading data transformation suite for automatically analyzing, applying and tracking changes in IT systems. They significantly improve quality while making transformation projects much faster and more cost-effective.

The SNP Group employs over 1,000 people worldwide. It is headquartered in Heidelberg, Germany and generated around 81 million euros in revenue in 2016. It serves multinational companies in all industries. SNP was established in 1994, went public in 2000, and has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since August 2014 (ISIN DE0007203705).

For more info, visit http://www.snpgroup.com

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Christine Graf
SNP
+1 2017057366
Email >

Joerg Petzhold
SNP AG
+49 6221 6425-270
Email >
Visit website