STANDEX ACQUIRED SANYU SWITCH CO., LTD.
In November last year, Standex International Corp. (NYSE:SXI) announced that it has entered into a definitive agreement, through its subsidiary Standex Electronics Japan Corporation, to acquire privately held, Japanese-based Sanyu Switch Co. Ltd.
The transaction is expected to close before Jan. 31, subject to required regulatory approvals. In its first year of ownership, the company expects the acquisition to achieve a double-digit return on invested capital. Standex, based in Salem, N.H., intends to fund the acquisition from its existing cash balance.
“We are very pleased to be acquiring Sanyu which strengthens electronics’ relay product line and technology. Sanyu’s customer base and product line are highly complementary to our existing business with the potential to further expand key account relationships and capitalize on cross-selling opportunities. Sanyu brings complementary engineering and manufacturing capabilities and will strengthen our global footprint,” commented President and Chief Executive Officer David Dunbar.
Sanyu Switch Co. Ltd. designs and manufactures reed relays, test sockets, testing systems for semi-conductor and other electronics manufacturing, and other switching applications.
ICAD EXPANDS LEADERSHIP TEAM
iCAD, Inc. (NASDAQ: ICAD), a Nashua-based medical technology company that develops cancer-detection solutions, announced back in December the expansion of its sales leadership with the addition of Peter Graham as senior vice president of North American sales and a role change for Bill Keyes to senior vice president, global sales operations, both effective immediately.
Since joining iCAD in December 2022, Bill Keyes has developed and deployed sales processes and procedures to organize a more streamlined sales operation and provide for a deeper view of iCAD’s customers and areas for growth. In his new role, Keyes will continue to provide sales operation guidance in North America and beyond, while building partnerships and business strategies for global growth.
Peter Graham is assuming responsibilities for revenue growth across North America, bringing more than 20 years of experience in the breast health, diagnostic and medical solutions space including roles at Tempus Labs, Arterys, Volpara and Xoft. Under Peter’s leadership, iCAD will be adding sales staff to support its growth. “We’re thrilled to welcome Peter to iCAD. His expertise in women’s health solutions, knowledge of the market needs and collaborative spirit are aligned with iCAD’s aim to bring best-in-class artificial intelligence (AI) informed mammograms and risk assessment solutions to women everywhere, helping create a world where cancer can’t hide,” said Ms. Strong.
CITIZENS M&A OUTLOOK
Citizens’ 2024 M&A Outlook — an annual survey of 400 leaders at U.S. middle-market companies and private equity firms — revealed optimism around the environment for dealmaking activity this year.
Mid-market firms are the most optimistic they have been since 2020, with 46% expecting a strong M&A market in 2024. PE firms are even more positive. More than half (52%) see strength in the current M&A market, up from just 38% last year. Further, 46% of PE firms expect higher deal volumes in 2024, compared to just 19% that expect deal flow to decrease.
Fewer mid-market companies cite operating factors such as commodity prices, interest rates and labor markets as headwinds for 2024 than did so in 2023, and the average economic forecast is significantly more optimistic than it was last year. Forty-six percent of mid-market companies and 50% of PE firms expect U.S. economic conditions to improve in 2024. Among those who expect an improving economy, 68% are likely to engage in M&A activity this year.
As economic conditions improve, more assets are expected to come to market, contributing to palpable buyer enthusiasm. Of the PE firms who see higher deal flow in 2024, 79% expect to buy more than they did in 2023, while only 21% expect to sell more. Among mid-market firms, the pool of potential buyers also expanded for the second year in a row.
Of the PE firms that see higher deal flow in 2024, eight in 10 say they expect to buy more than they did in 2023 and a quarter are looking for AI assets to add to their portfolio.
Among mid-market companies, 51% of sellers and 44% of buyers say they would consider international deals. PE firms’ interest in international investment opportunities increased year-over-year to 55% from 37%.
Uncertainty regarding the outcome of the upcoming U.S. election could support dealmaking in the first half of the year. Forty-one percent of mid-market companies say the pending election makes them more likely to pursue M&A in 2024, while just 25% say it makes them less likely to pursue a deal.
