Saturday, October 13, 2007

Acquisition Strategy - Companies

Google’s ‘Really Crazy’ Acquisition Strategy

what does Google, which has about $11 billion in cash and lots of high-priced stock to use as currency, look for in an acquisition target? According to its chief dealmaker, Google likes ideas that are “really crazy.”

“We look at everything very carefully,'’ Salman Ullah, Google’s director of corporate development, said Wednesday in a speech at a meeting of the Los Angeles Venture Association, according to Bloomberg News. “The really crazy ones do really well.'’

Google’s acquisitions in the past year or so have ranged from its $1.65 billion deal for video-sharing Web site YouTube (whose business strategy might not be crazy but has certainly spawned a few lawsuits) and small bolt-ons such as Writerly, a Web-based word processing application.

Google’s acquisitions team consists of about 15 people who Mr. Ullah said meet with dozens of companies every week. They respond to every e-mail pitch they receive, he added. But don’t call them, at least unless you have a really good idea — they return just 10 percent of phone messages from entrepreneurs looking to sell.

Echoing a former marketing line from Apple, Mr. Ullah said, “The crazy ones mean they ignore the usual restraints of investment levels required or design parameters or ‘Gee I need more servers than anyone ever thought was possible’. When you free yourselves from these constraints, you create crazy, cool things.'’

April 12, 2007
http://dealbook.blogs.nytimes.com/2007/04/12/googles-really-crazy-acquisition-strategy/#more-13454
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Kingspan Group - Acquisition Strategy

Kingspan group companies are now established in Europe, North America and Australasia in various markets and this global presence is ever increasing.

Products: Insulation products, Insulated Panels, Structural Products, Access Floors, Environmental Products

http://www.kingspan.com/ksp/about/strategy/acquisitionstrategy/

Kingspan seeks to evaluate and acquire businesses with strong product, technical, manufacturing or management capabilities that can be effectively integrated into Kingspan's existing business model. Historically, the Group has been active in acquiring companies that created value by expanding Kingspan's product range or market share in its key markets. Kingspan expects that it will continue to be acquisitive in the future, as it considers the optimal mix of products and operations to serve its high-potential markets.
The businesses that Kingspan targets for potential acquisition typically possess one or more of the following characteristics:

Complementary products that can be added to range
Competing product - that will enhance market share
Foot print in market where Kingspan has limited suboptimal share
complemenatry IP or proprietory products
Attractive distribution channels
Strategic manufacturing capactity
High quality management team
display similar growth potential to existing range
display similar conversion potential to existing range

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Penn Engineering

Acquisition Strategy The Corporate Development team explores new growth avenues for PennEngineering. The Company is very active in acquiring new technologies, product lines, smaller privately owned companies, and joint ventures worldwide.

The Corporate Development team maintains contact with an extensive network of leads, ranging from brokers and bankers in the investment banking community to lawyers, accountants, consultants and local banks. The Merger and Acquisition Statement is regularly updated to reflect the strategic needs of the corporation and its operating companies.

http://www.penn-eng.com/about/acquisition.html


The Merger and Acquisition Statement of Penn Engineering

GENERAL
PennEngineering has enjoyed a sustained, positive growth due to its participation in fast growing, technology impacted markets, primarily those related to OEM component and system manufacturing, as well as those involving information technology and services operations. PennEngineering is presently uniquely equipped to service these industries through its three business units - fasteners, motors, and distribution.
PennEngineering anticipates that a significant portion of its future growth will come as a result of increasing its offerings to current and emerging markets. With a track record as a successfully diversified manufacturing and services company, PennEngineering considers the acquisition of companies to be the preferred method of increasing those offerings and gaining entry into new markets.

PennEngineering's divisions are involved in an ongoing and aggressive strategic growth initiative to maintain their dominance in selected niche markets through evolution and innovation, by introducing new products and services in anticipation of customer needs and by increasing their market share. An example: extensions to the core businesses in motors by way of adding evolutionary integral electronic controls and customization options. Add-on product lines and the acquisition of smaller competitors and complementary technologies are all routes being considered, as are joint ventures, equity participation, and alliances.

KEY ACQUISITION CRITERIA
A record of successful growth, both top line and bottom line, strong management, excellent leadership, a significant niche market position, brand recognition, and a proprietary core technology are all prerequisites for consideration as a PennEngineering acquisition candidate. The ability to function and to continue to grow independently with minimal supervision is essential criteria in a prospective acquisition.

REPRESENTATIVE AREAS OF INTEREST
PennEngineering seeks companies that offer technologies or products complimentary to existing product lines or extensions of those product lines. Examples for the motor segment include, but are not limited to, drive controls, clutches, brakes, and linear and stepper motors. Examples for the fastener segment include, but are not limited to, unique fasteners, latches, handles, access hardware, adhesives, and elastomeric products. Examples for the distribution segment include, but are not limited to, strategic distribution locations not presently served by existing channels, products that can be stocked and sold by PennEngineering's distribution centers, software that improves an OEM's inventory control.

In addition, PennEngineering will consider fragmented industries where consolidation of those fragments can lead to a significant market presence. Examples include, but are not limited to, thermal management, flexible circuitry, EMI/RFI suppression, and lighting products.

OWNERSHIP
PennEngineering has made several successful acquisitions of privately owned companies, and recognizes that many companies wish to maintain their ongoing identity. Private owners desiring an orderly estate transition while preserving employee welfare are especially catered to with creative acquisition strategies.

Link to Most Recent Acquisition

For more information, contact Richard F. Davies
Phone: 215-766-8853 ext. 3605 Email: M-A@penn-eng.com


http://www.penn-eng.com/mastatement.html
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Sage


Acquisition Strategy
Acquisitions have always been a fundamental component of Sage’s growth strategy. Through acquisition, we have increased our customer base and expanded our business internationally.

Sage’s acquisition strategy is based on three objectives:

To broaden the portfolio of our existing products and services we can offer our customers
To enter new geographic regions
To add new industry-specific applications to our product lines
Acquisitions also contribute to our customer base, with new customers who can migrate to the broad Sage product range.

http://www.investors.sage.com/strategy/growth_strategy/acquisition_strategy/


Acquisitions done by Sage


Date - Company -- Country -- Value -- Rationale


2007 - Creative - Singapore, Malaysia --S$10m -- HR and payroll
2007 ORSEC France €3m Accountancy vertical
2007 Snowdrop UK £17m HR and payroll
2007 Pro-Concept Switzerland £7.5m Accounting: Mid Market
2006 Protx UK £20m Merchant Services
2006 Emdeon Healthcare US £297m Healthcare Vertical
2006 Elit France £21m Transport and food distribution vertical
2006 Bäurer Germany £16m Accounting: Mid Market, Retail & Manufacturing Vertical
2006 UBS Malaysia £14m Accounting: New territory
2006 Verus US £184m Merchant Services
2005 Adonix France £78.4 Accounting: Mid-market
2005 Cogestib France £7.7m Distribution Vertical
2005 Logic Control Spain £54.7m Accounting: Mid-market
2005 Symfonia Poland £10.5m New Territory
2005 Simultan Switzerland £10.7m Accounting, Payroll : Mid-market
2004 FLS US £10.4m Payroll Services
2004 ACCPAC US £62.5m CRM: Mid-Market New Territory
2003 Grupo SP Spain £49.1m Accounting: New Territory
2003 Softline South Africa £66.0m Accounting: New Territory
2003 Timberline US £63.6m Construction Vertical
2002 CPASoftware US £9.1m Accountancy Vertical
2001 MIP US £13.8m Not-for-profit Vertical
2001 Interact US £190.4m Customer Relationship Management
2000 Best US £286.4m Fixed Asset, Payroll, HR
1999 Sesam Switzerland £11.3m Accounting: Mid Market
1999 Tetra UK £81.1m Accounting: Mid Market
1999 Peachtree US £190.5m Accounting: Entry Level
1998 State of the Art US £163.1m Accounting: Mid Market
1997 KHK Germany £40.7m Accounting: New Territory
1995 Sybel France £16.6m Accounting: Mid Market
1993 Saari France £19.6m Accounting: Mid Market
1992 Ciel France £4.6m Accounting: New Territory
1991 DacEasy US £14.6m Accounting: New Territory

http://www.investors.sage.com/company_information/timelines/acquisition_table/

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