2013 Storage Highlights

2013 M&A deal volume of 25 equals 2012 while total consideration jumps up to $9.5B, primarily driven by Avago’s Q4 purchase of LSI for $6.6B, representing 69% of the consideration for 2013.  In Q4 we also had Xyratex finding a home at Seagate for $374M and the “Hail Mary” merger of Tandberg and Overland. 

For the 25 transactions in 2013, the median deal size was $110M with a Price to Revenue Median of 5.0X.  There were 17 technology focused transactions with a median deal size of $98M and a Price to Revenue Multiple of 6.0X.  The remaining 8 transactions were business focused with a median deal size of $214M and a price to revenue multiple of 1.0X. 

In 2013 storage related venture funding was strong at $955M, a slight decline from 2012’s $978M.  The 43 rounds of funding had an average round size of $22.2M, similar to 2012’s $20.8M average round size for the 49 rounds.  2013 ended with two strong quarters of funding, $339M in Q3 and $249M in Q4, accounting for more than 60% of the year’s funding, which was driven by the Software and Systems segments. 

For the full report please contact John Rotchford, Managing Director, Strategic Advisory Services International, at john@sasillc.com.