Notable Consumer Electronics M&A Transactions
August 20, 2018: Smartbox, a provider of assistive technology products for disabled people, reached a definitive agreement to be acquired by Tobii Dynavox for an undisclosed amount. The acquisition brings together the industry leading communication software Grid from the company with the acquirer’s industry-leading touch and eye-tracking solutions for assistive communication.
August 18, 2018: Flipkart is an e-commerce shopping portal intended to offer a wide range of consumer products across India. Alphabet (NASDAQ: GOOG) is reportedly in talks to buy an estimated 15% stake for $3 billion, valuing the business at $20.8 billion or 4.52x revenue. Earlier, the company was acquired by Walmart (NYS: WMT) for $16 billion. The investment capital also includes $2 billion in new equity funding which will be used for growth while the transaction was structured so that Flipkart itself can still go public.
August 16, 2018: Lumo Bodytech, a developer of wearables biomechanics platform designed to optimize human potential and improve health, was acquired by Seismic (Powered Clothing) for an undisclosed amount.
August 15, 2018: GreatCall, a provider of mobile based applications and devices for aging consumers, reached a definitive agreement to be acquired by Best Buy (NYS: BBY) for $800 million. Previously, the company was acquired by GTCR through an LBO in 2017. GTCR expects to commit additional equity capital to fund future acquisitions and organic growth initiatives. Jefferies Finance provided debt financing in the form of a $15 million revolving line of credit, a $150 million first lien term loan and a $75 million second lien term loan.
August 14, 2018: Xplore Technologies, a developer of wireless tablet PC, was acquired by Zebra Technologies (NASDAQ: ZBRA) for $90 million, or 1.04x revenue or 36.01x EBITDA. The acquisition of Xplore will enhance the acquirer’s product lineup and gives them a complete rugged tablet portfolio that enables their customers to gain a performance.
August 14, 2018: The Kudelski Group (SmarDTV’s Conditional Access Module and Set-Top Box businesses), a manufacturer of electronics devices for the pay-television industries, reached a definitive agreement to be acquired by NEOTION, a subsidiary of General Satellite for $20 million. The terms of the agreement include the potential for additional earn-out payments that are primarily based on CAM and set-top box sales volumes in the period up to the end of 2021. The acquisition is part of the Kudelski Group’s strategy to focus on core activities in which it has or will reach critical mass and profitability to fund on-going growth initiatives.
August 13, 2018: Nio (NYS: NIO), a manufacturer of electric cars designed to shape the future of mobility in the hopes of establishing a sustainable future, filed to go public on the New York Stock Exchange. The expected offering amount is $1.8 billion. Previously, the company received $189.9 million of debt financing in the form of a loan from undisclosed lenders and its investors.
August 13, 2018: LittleBits, a manufacturer of easy-to-use electronic building blocks platform created to empower children to invent anything, raised $7.78 million of venture funding from undisclosed investors.