Built in Idaho's Q3 Deal Flow Report is here!

Written By Guest User

Exciting news: the Q3 Deal Flow Report is here! We took a deep dive into the data and found some interesting trends and insights.

On the docket: 

  1. First look at the Q3 Deal Flow Report

  2. The biggest deal of Q3

  3. Investing across state lines

  4. Idaho’s extensive resources snag big investors

In Q3 2020, we’ve seen tech take center stage as investors inject capital into companies like Killer Creamery, SturdyAI, and Appdetex. We’ve heard rumblings of other companies getting ready to seek funding, is this the start of a funding wave in Idaho? 

 

 

1. Q3 Deal Flow Report is here 

The Built in Idaho newsletter community gets the first look at the Q3 Deal Flow Report. With $2 billion in total capital flow, Idaho’s businesses continue to grow despite the impacts of Covid. 

Read the report here >

 

 

2. The biggest deal of Q3: an all-cash acquisition

  • Ericsson acquires Boise-based Cradlepoint for $1.1 billion

  • The 14-year-old wireless solutions company was acquired in an impressive cash deal. Read more about it here >

  • What does this mean for emerging Idaho tech? With private equity firm Teleo adding a hub to the Boise area, we could see some big deals in 2021. Teleo closed a $250 million fund shortly before announcing the addition of its new Boise headquarters. Do they have their eyes on some of Idaho’s operationally-focused tech startups or are they here for the skiing? Taking a look at Teleo’s portfolio, they seem to favor specialized software companies and prefer function over flash. We see many companies that fit this profile like Legov Systems Group, SturdyAI, and SurveyHealthcareGlobus. Did Cradlepoint’s billion-dollar tech deal pave the way for another big move in 2021?


 

3. Q3 M&A activity doubled quarter over quarter, almost all acquirers from outside Idaho 

  • With a total of 13 M&A deals, Q3 2020 almost matched Q3 2019’s M&A numbers—an impressive feat given the current circumstances. The interesting thing about these deals is that all but one of these companies was acquired by investors outside of Idaho.

  • Are we seeing a trend toward increasing strategic investor interest in small-to-midsize Idaho companies? Idaho’s Q3 acquisitions match the profiles of your typical M&A deal: a parent company looking for an attractive acquisition to offer a strategic advantage. Berkadia’s acquisition of LIHTC Advisors gave Berkadia’s Affordable division decades of experience in an area they’re projecting significant growth. Rental Equipment Investment Corp’s (REIC) acquisition of Draco Equipment was a geographical play. REIC has acquired 10 companies since 2014, focusing on geographical spread rather than diversifying service offerings.

  • Will we see more Idaho-based companies investing in local businesses in the next few years? Idaho has many up-and-coming startups in the Treasure Valley and many established companies sprinkled around the state with the capacity to invest and acquire. This, coupled with a growing number of startups could drive increased intrastate capital flow and M&A activity. When we control for high-dollar deals and focus on small to mid-size businesses, we see an upward trend of capital flow in our state over the last decade. With increased capital flow in Idaho’s lower middle market businesses, we expect to see more in-state M&A activity in the next few years. See the data for yourself on our Deal Flow Data page >

 

 

4. Sunroc continues to invest in Idaho’s extensive resources, and renewable energy gets a boost. 

 

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Deal Submission page.

 

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