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M&A in IT Sector and ICAP OverviewIgor Kaloshin
July 2014
Strategic, Long Term Investor
Intel’s Global Investment and M&A Organization
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Our Mission
Enhance Intel’s strategic
objectives by making and
managing financially
attractive investments. Strategic Financial
Intel
Capital
Global Investment Footprint
$11 billion+ in over 1350 Companies across 55 Countries
Intel Offices and Intel Capital
Invested
Intel Capital Invested
$100m China Smart Device Innovation Fund
$500m China Technology Fund II
$250m India Technology Fund
$50m Brazil Technology Fund
$50m Middle East and Turkey Fund
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*Other marks and brands are property of their respective owners
Innovative technology and usage models
Strategic interest to Intel
Strong management teams
Addresses rapidly growing and sizable markets
Transparent Offshore holding structure
Exit opportunity or consolidation into Intel Corp.
Investment Criteria
When making investments, we look for:
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Investing in a World of Possibilities
Datacenter, Cloud Infrastructure and Network Storage
Smartphone and Tablets
Datacenter Software
Internet of Things Solutions
New Devices and Wearables
Security
Services, Open Source, and Machine to Machine
Ultrabook™ and Perceptual Computing
Internet, Digital Media and Education
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Consistent Investor
2013
M*$333
IPOS6
Acquired27
Companies
Historical
1,351
B$11
Countries55
37
IPOS207
Acquired349% Dollars
Outside N. America
New Investments
Outside N. America28
49% Dollars
Outside N. America
63New
Investments
* Number Includes New and Follow-on Deals Data as of April 14, 20146
A Proven Track Record of Engagement
Investments ranging from
$250,000 to $250 million+
Any stage of funding
Lead or supporting investor
Agile decision-making
Unparalleled network of Global
2000 companies
Resources beyond capital
Active board participation
New & follow-on rounds
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Investing $300 - $500 million per year in innovative companies
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M&A Process
Initial Contact and Preliminary Due
Diligence
Term Sheet Negotiations
Due Diligence Closing
• 2-4 weeks
• Determine whether project is of strategic or financial interest to Intel
• 3-4 weeks
• Agree on main terms of the potential deal –valuation, governance, exit provisions, etc.
• 4-8 weeks
• Business, Legal, financial, tax
• 2-4 weeks
BindingNon-binding
Normally process takes 3-5 months
VCA – June 2014 Individual topic here © here9
Key Factors of Success
Customer tested and sellable product with traction (Pilot Program – R&D engagement)
Driven by Serial entrepreneur OR Intrepreneur
Strong Product Development Focus – Not a research project!
Focus on clean code development and documentation (ease of integration)
Not just time to market, but, Time to Exit. Speed and Execution Critical
Business Execution to Exit:18 – (max) 36 months
Active Market Engagement . Creating conditions for a Bidding War
Interest for acquiring Company:
Ease of Acquisition
Stopping Pain: Avoiding loss of customers or loss of revenue
Causing Pain: Stealing Market Share (hurting competition)
Enhancing Story with Wall Street
Intel Confidential — Do Not Forward
Building Technology Ecosystems
Data Center &
Cloud Services
Investing Across Computing to Build Ecosystems for New User Experiences
PC, 2in1 Ultrabook™ Tablet &
Smartphone
Intelligent
Systems, New
Devices &
Wearables
$300m Ultrabook™
Fund $100m Connected Car Fund
$100m Experiences and Perceptual Computing Fund
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*Other marks and brands are property of their respective owners
Intel Corp Strategic Acquisitions
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