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Business Information Acquisitions Lead over Internal Business Development

During the first quarter of 2014 BIIA tracked over 90 company announcements covering acquisitions, internal product development, partnerships, international expansion, start-ups and divestitures.

Announcements Q1 2014 AIn comparing the first quarter with the full year 2013 data it can be said that business information companies acquired more capabilities and products than what they developed on their own.

Partnerships continue to be in vogue with companies marrying data with software, adding analytical capabilities and providing access to new users.  Analytics, platforms and BIG data continue to dominate in business development representing almost 50% of the announcements.  In the analytics segment fraud detection services are high on the list.

Announcements Q1 2014 CBIIA also noticed business information companies are moving into segments which BIIA has categorized as ‘Other’.  Some companies are fully embracing the concepts of social media, networks, e-commerce, training programs, business insights and intelligence as a means to expand their markets.  Others move into the healthcare information software segment or payment systems.

If you are in analytics, healthcare information and payment services the rewards appear to be higher.  According to Marlin & Associates review of enterprise values for 2013, data and analytics services for the financial services segment have a revenue multiple of 5.3x, while information and market research services have a lower revenue multiple of 3.5x.  Healthcare information software services have a revenue multiple of 4.4x.  Same applies for payment systems.

Source:  BIIA Analysis

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