Issue 27

ROKU’S GROWTH: CREATING HUGE BUYOUT OPPORTUNITIES FOR TMT

The rapid rise of TV streaming platform company Roku has been difficult to ignore in the last year. Since going public, Roku has demonstrated market expansion and execution excellence, while lowering competitive risk and capital intensity through its strategic positioning as an “over-the-top” (OTT) takeover target and disruptive business model. With its continued growth, it is likely that larger companies such as Amazon or Google may be circling for a potential buyout.

TRANSDIGM ACQUIRES ESTERLINE

The aerospace-focused PE firm Transdigm acquired its rival Esterline last October for 4B$, its largest-ever deal. Evercore and Goldman Sachs advised Esterline, while Morgan Stanley advised Transdigm. This deal is expected to close this spring and will put Transdigm among the leaders of its industry. As of March, the company’s shares have increased by roughly 30% since the deal was announced and the market is optimistic about the company’s future.

EXPERTISE IS KEY WHEN IT COMES TO ENTERPRISE SOFTWARE

Software investments are currently surging in private markets. Technology pervades many PE deals because PE firms are in pursuit of deals that will drive sustainable value. Developments increasingly appealing to PE investors include artificial intelligence, data management, healthcare IT, industrial automation, and Software-as-a-Service.