Boston, MA – Capstone Headwaters released its Application Development (AppDev) & Deployment Update today, reporting that the industry has demonstrated resilience and heightened demand throughout the COVID-19 pandemic, as consumers and businesses have embraced digital platforms and mobile applications to connect and communicate amid social distancing measures and lockdowns. While recessionary dynamics such as downsizing and hiring freezes have impacted aspects of Application Development & Deployment businesses, the at-home workforce alongside heightened demand for digital sophistication in industries such as Healthcare and Education, has proved an overall boon for the industry.
As software and service providers seek to support all aspects of their customers’ successful digital transformation, many have turned to mergers and acquisitions (M&A) to augment their software and service offerings. M&A activity increased 50% year-over-year in North America and Europe, with 72 announced or closed transactions year-to-date (YTD) compared to 48 deals YTD in 2019.
“The COVID-19 pandemic has had a dramatic positive effect on M&A deal volume and valuations in the AppDev and Enterprise Service Management sectors,” said Capstone Managing Director David DeSimone. “As enterprises need to serve both customers and their employee bases in purely digital environments, we have seen a marked uptick in acquisitions of targets that enable rapid mobile application development and transitions to Cloud-first deployments. We expect these trends to continue as macro forces drive both customers and employees into mobile and remote activity in the coming quarters and perhaps beyond into the future.”
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Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States. The firm has a rich 15+ year history of achieving extraordinary results for middle market entrepreneurs, business owners, investors, and creditors. Capstone offers a fully integrated suite of corporate finance services, including merger & acquisition, debt & equity placement, corporate restructuring, valuation & fairness opinion, financial advisory, and ESOP advisory services. Headquartered in Boston, the firm has 150+ professionals across 16 offices in the U.S., with and an international presence including over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis. Capstone has been named “U.S. Middle Market Investment Bank of the Year” for the past 9 consecutive years and is consistently recognized as one of the top investment banking firms to work for. For more information, visit www.capstoneheadwaters.com.
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