• Capital Markets –In 4Q 2016, IoT/ M2M companies have outperformed the S&P 500 and the NASDAQ. Handset companies have outperformed the NASDAQ but underperformed the S&P 500. Wireless & Diversified Infrastructure, Mobile Marketing & Advertising and Mobile Software & Solutions companies have underperformed both indices.
  • Trading Multiples –Mobile Software & Solutions companies (2.1x LTM revenue median), along with Wireless & Diversified Infrastructure companies(1.8x LTM revenue median) and IoT/ M2Mcompanies (1.2x LTM revenue median), rose in 4Q 2016, whereas Handset companies (0.3x LTM revenue median) and Mobile Marketing & Advertising companies (1.1x LTM revenue median) decline.
  • M&A Activity –M&A activity slowed in 4Q 2016 with 58 deals, which amounts to the lowest volume since 4Q 2013. M&A aggregate transaction value decreased sharplyover the prior quarter dropping to $1.0 billion. Notable transactions include Adobe’s $540 million acquisition of TubeMoguland Pacific Special’s $303 million acquisition of Borqs.
  • Investment Activity –Investment volume continued to rise, with 293 investments up from 272 the prior quarter. Investment value decreased over the prior quarter dropping to $4.5 billion from $6.3 billion the prior quarter. Notable recent investments include OneWeb’s$1.2 billion raise.