- REUTERS/Jason Reed
Dealmaking in the tech industry is back with a bang.
Goldman Sachs’ research analysts, led by Jessica Binder Graham, updated the basket of companies the bank thinks could get acquired in the next 12 months.
LinkedIn had a two ranking, meaning the research analysts thought it had a 15% to 30% probability of being involved in mergers and acquisitions activity.
Here’s a list of those companies in the tech, media, and telecoms sectors with a one ranking, meaning a 30% to 50% chance of M&A in the next 12 months.
What: Acacia makes high-speed optical-networking products.
Market cap: $1.5 billion
Recent news: The company, based in Maynard, Massachusetts, went public on May 13. It marked the second tech initial public offering this year, and it was seen as a welcoming sign for some investors amid a quiet IPO market.
What:Lumentum makes and sells lasers and fiber-optics parts.
Market cap:$1.5 billion
Recent news: This company, based in Milpitas, California, reported revenue of $230.4 million for the three months to April 2, up 16% year on year. The company cited strong demand from China and a growing data center network.
- Cornerstone OnDemand
What: Cornerstone offers an online enterprise training and recruiting service.
Market cap:$2.5 billion
Recent news: Cornerstone’s revenue for Q1 2016 was $99.3 million, a 34% jump from the same period last year.
What: Criteo is a France-based ad tech company that has been described as the “poster child” of retargeting, or serving an ad to someone who has already viewed your product or website.
Market cap: $3.2 billion
Recent news: Criteo has been of the few star performers as other ad tech companies have tumbled. CEO Eric Eichmann attributed its competitive edge to three things: staying laser-focused, working directly with clients, and the ability to scale.
- Thomson Reuters
What: Streaming pioneer and internet radio service.
Market cap:$2.8 billion
Recent news: Pandora has been unprofitable since it went public in 2011, and it’s facing brutal competition from Apple, Google, and other online streaming players. Keith Meister, a protégé of billionaire activist investor Carl Icahn, is the largest shareholder in the firm. He pushed for a sale in mid-May.
- REUTERS/Robert Galbraith
What: A mobile game developer known for early social gaming sensations including “FarmVille” and “Words With Friends.”
Market cap:$2.3 billion
Recent news: The company delivered a solid first quarter, reporting revenue of $187 million, beating Wall Street expectations of $162.19 million. The stock jumped on the earnings, which were the first under new CEO Frank Gibeau. He has has set about trying to turn the company around by “doing more with less.”
MACOM Technology Solutions
- REUTERS/Toru Hanai
What: It develops radio, microwave, and semiconductor parts.
Market cap:$2.1 billion
Recent news: MACOM reported a $7.2 million operating loss for the three months ended April 1 – a deeper loss than the $2.4 million operating loss than in the same period a year earlier. Revenues increased 15%, however, up to $133.6 million. The firm also filed a lawsuit against Infineon Technologies for interfering its its right to use 4G/LTE and 5G networks.
- Valentin Flauraud/ Reuters
What:A silicon wafer maker that spun out of SunEdison and went public in May 2014.
Market cap:$235 million
Recent news: The company has been having some difficulties. It has an investment in SMP, a joint venture, which has filed to reorganize itself in Korea. SunEdison, SMP’s largest investor and customer, has filed for Chapter 11. SunEdison Semiconductor reported a $12.8 million operating loss in the first quarter, and a $15.4 million operating loss in the fourth quarter of 2015.