2015 was a recording breaking year in terms of total consideration that nearly reached $100B – The Dell/EMC deal at $63.1B is the largest storage related deal in history with WD/SanDisk the second largest with $19B in consideration. These two deals certainly signal the arrival of multiple storage market disruptions coming from flash, software defined storage, cloud services and the general movement away from proprietary solutions to software running on commodity systems.
2015 can also be viewed as the pinnacle year for storage industry consolidation as we are now down to half the public storage companies that we initially tracked back in 2005 – The consolidation has reduced the number of storage related buyers in the market but we have seen new entrants from cloud services and also private equity. Newly public firms like Pure Storage and the planned IPO of Nutanix and others will add to new buyers flush with cash and public stock for deals.
For 2016, we see another strong year in terms of deal volume around 30 but will likely see total consideration drop back down to historical levels.
Of the 29 deals in 2015, 13 were technology focused with a median deal size of $152M and a price to revenue multiple of 4.9X – Technology deals totaled $2.1B while Business deals totaled $95.3B with 16 deals that had a median deal size of $694M and a price to revenue multiple of 2.6X.
For SASI’s complete 2015 Storage M&A and Venture Funding Report, please contact Christine Tosney at firstname.lastname@example.org.