Tech deals came from many places in 2014. Companies looked to build up their cloud offerings and bulk up on cybersecurity, or expand into new tech territory. The health care sector also began implementing more technology as a means to handle an influx of patients. Here is Mergers & Acquisitions round up of 12 of the year's most notable mid-market technology deals (in order of deal announcement date):
1. In January, Chicago private equity firm Sterling Partners closed a $109 million deal for e-commerce logistics provider Innotrac Inc. Innotrac provides e-commerce fulfillment, reverse logistics, call-center support and digital technology integration to retailers globally. (Watch our video, below). Sterling has yet to make add-on acquisitions to Innotrac, but Sterling senior managing director Rick Elfman says the company has grown organically through an increase in customers.
2. In Feburary, Palo Alto, California-based HGGC added Buy4Now Technology Group to grocery e-commerce services provider MyWebGrocer in February. The acquisition of Buy4Now allowed HGGC to take Winooski, Vermont-based MyWebGrocer international. The Dublin-based target provides e-commerce software services to grocery and retail clients in Europe. HGGC's investment of MyWebGrocer made our roundup of notable tech deals from 2013.
3. In April, Symphony Technology Group bought MDdatacor from Noridian Mutual Insurance Co., adding health care data integration and analytics services to form Symphony Performance Health, A Symphony Technology portfolio company. Symphony Performance provides analytics and technology services to the health care sector in a time where providers are looking to invest in technology to help take costs out of the system and the number of patients they see is on the rise, due in part to the Affordable Care Act. For more on health care technology M&A, see 5 Technologies That Drove Health Care M&A in 2014.
4. Audio company Harman International Industries Inc. (NYSE: HAR) expanded its product portfolio in May with the $365 million acquisition of AMX LLC, which makes control and automation systems. The Richardson, Texas-based target makes technology, including video distribution hardware and software that is used in conference rooms, hotels, command centers, entertainment venues and broadcast facilities.
5. Test-preparation company Kaplan acquired Dev Bootcamp, which gives it entry into the market for training software developers, in June. Dev Bootcamp's program is designed to give users coding skills needed for an entry-level position in software development in nine weeks. Fort Lauderdale, Florida-based Kaplan is known for providing test-prep for people who are studying for the LSAT, GRE, GMAT, SAT and other standardized tests. Terms of the deal were not disclosed. For more on the e-learning space, see E-Learning Providers Eager to Expand.
6. In August, Chicago private equity firm GTCR entered into a new partnership with health care industry veteran David Snow (pictured, below) to form Cedar Gate Technologies LLC, a health care information technology group. The Darien, Connecticut-based company is on the lookout for companies and products in the health care IT space that it could acquire, with the goal of building a leading health care data and analytics business. GTCR is investing up to $200 million to support the strategy. The firm has a history of partnering with high-profile CEOs (Snow served as CEO of Medco, which was spun out of Merck (NYSE: MRK) until 2012, when the company was sold to Express Scripts) to build leading companies. The firm previously partnered with Doug Bergeron to build VeriFone Systems Inc. (NYSE: PAY), which went public in 2005. The firm won Mergers & Acquisitions Mid-Market M&A Private Equity Firm of the Year award for 2013.
7. Google Inc. (Nasdaq: GOOG) agreed in August to buy Zync Inc., a visual effects software group that allows film and television studios to create enhanced scenes and special effects through cloud-based software. The deal allowed the web-search giant to expand its cloud offerings.
8. Siris Capital Group agreed in October to Spend $840 million to buy e-commerce services provider Digital River (Nasdaq: DRIV), bringing in big-name clients, including HarperCollins, Mattel (Nasdaq: MAT), Spotify, Adobe (Nasdaq: ADBE) and Microsoft (Nasdaq: MSFT). Minnetonka, Minnesota-based Digital River provides e-commerce, payments and marketing services to clients. The deal comes as investors look to e-commerce providers as a good investment. For more on the trend, see Retail Reboot: Investors Snatch Up E-Commerce Services.
9. In November, New York asset manager the Carlyle Group (Nasdaq: CG) and other co-investors made a $700 million deal for Dealogic, a data and analytics provider for financial institutions. The New York and London-based target provides market intelligence and capital markets software to more than 500 clients, including the world's top 50 investment banks. Carlyle partnered with Randall Winn (pictured, right), co-founder and former CEO of S&P Capital IQ, and Euromoney Institutional Investor plc on the deal. The new owners plan to help the company grow, through developing new software-as-a-service offerings, as well as making add-on acquisitions.
10. 3D printing company MakerBot acquired software startup Layer By Layer in November. The buyer, a subsidiary of Stratasys Ltd. (Nasdaq: SSYS), expects the deal to accelerate its position in the entertainment and 3D printing management spaces. As part of the deal, some of Layer By Layer's employees, including founders Jonathan Schwartz, Max Friefeld and Oliver Ortlieb, joined MakerBot. For more on the 3D printing space, watch our video, 3D Printing Stands Out as Manufacturing Surges.
11. Adobe Systems Inc., under the leadership of CEO Shantanu Narayen (pictured, right) agreed in December to buy stock photography service Fotolia LLC for about $800 million. The deal is said to aim to enhance Adobe's Creative Cloud service, which is an online product for editing photos.
12. In December, Belden Inc. (NYSE: BDC) agreed to buy Thoma Bravo-backed cybersecurity provider Tripwire for $710 million, at a time when cybersecurity was making headlines, including the attack on Sony Pictures , the movie studio of Sony Corp. (NYSE). Belden, which provides signal transmission services and various technology products, plans to integrate Tripwire's security technology into its products. For more on cybersecurity, see Hacked Sony Movies Highlight Opportunities for Buyers of Cybersecurity Firms.
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Corrected January 2, 2015 at 3:00PM: 3869102683001