Through the iSPIRT M&A connect program, the think tank wants to facilitate and expedite cross-border M&A for Indian software product companies.
The Indian technology ecosystem, only saw 56 M&A deals in 2012 out of which 46% were inbound, 39% domestic and 25% outbound, according to a study by Zinnov.
“The problem is really big,” said Jay Pullur, Founder & CEO of Pramati Technologies, who is one of the prime movers behind the program. He pointed out that very few Indian companies are in the radar of technology buyers in the US & Europe.
Members of the think tank had met with senior executives and M&A professionals from Autodesk, Cadence, IBM, Intel and other companies in May.
The iSPIRT has been advocating the need for more M&As in the technology mid market. There have to be more exits so that the talent and money can come back into the product ecosystem, said Pullur.
iSPIRT also an action plan to facilitate discovery and promote readiness in the M&A ecosystem. The think tank is currently working with 10 companies on such deals.
Signal Hill, has an investment banking team of over 70 people and has completed more than 50 transactions in the last five years. Mid sized deals in the software product space could range between $20 mn – $250 mn. The sweet spot is between $20 mn – $40 mn in the segment.
Here’s what iSPIRT’s action plan looks like