The global M&A market continued its growth trend in 2018 with announced transaction volumes reaching $4.1 trillion, according to a JP Morgan report. In the present technology-driven global economy, the strength of a company’s intellectual assets has a far-reaching impact on the value of a corporate transaction.
Intellectual property is among the most valuable assets for a business. In recent times, M&A activities have been driven in large part with the objective of gaining access to the target company’s intellectual assets.
A business’ brand value along with its product portfolio and intellectual assets are some of the key aspects that impact the eventual value of an M&A transaction.
Typically in an M&A scenario, an assessment is done on how well the target company’s IP portfolio complements that of the acquiring company. Similarly in the case of large company mergers, the combined technology and IP assets are compared against those of other sectoral competitors. From an IP perspective, the combined patent portfolio should provide the merged entity with the ability to introduce new products, and afford them enhanced patent coverage both in terms of technology and geographical jurisdictions.
Given the above, how does one ensure that proper IP due diligence is performed such that businesses get the optimum ROI post the transaction? Relecura’s advanced analytics platform provides a systematic and effective way to realize the following objectives relevant to an M&A scenario. Some of the key tasks to be performed are as follows.
In the video, we use patent data to address the hitherto hypothetical question of who stands to gain the most IP-wise, by acquiring Nuance.
Nuance Communications, as one of the pioneers of speech recognition technology, has changed the way people interact with the devices, systems, and applications that surround them. Nuance was founded in 1994 as a spin-off of SRI International’s Speech Technology and Research (STAR) Laboratory.
The company has developed sophisticated voice systems and has absorbed a number of companies working on voice recognition capabilities over a period of two decades. It is now the owner of an enviable patent portfolio related to advanced speech recognition technologies.
It is Nuance’s strong technology portfolio that has made it a perennial acquisition target. In 2010, news surfaced that Apple was planning to purchase Nuance. Steve Wozniak mistakenly claimed Apple had already acquired the company. Apple clarified its stance but assumptions were made of a deal between the two companies. The potential acquisition was estimated to be worth USD 7 billion. In April 2010 Apple instead purchased Siri, the maker of voice control software and popular app for the iPhone. Amidst all the speculations was buried the fact that Siri’s voice assistant, relied on Nuance technology. In 2013, Nuance confirmed that it was their technology powering Siri’s voice recognition capabilities.
In 2014, the reports of Samsung’s plan to purchase Nuance triggered market reaction and speculation around the impact of Nuance’s acquisition on the speech technology market, especially on the iPhone ecosystem.
In the video, we indicate how the patent portfolios of multiple potential acquirers can be mapped across the key speech recognition categories of Nuance’s portfolio and compared. This addresses the question that we posed earlier and hints at which companies stand to gain the most IP-wise by acquiring Nuance and its patent assets
You can also get IP insights related to other large technology mergers and acquisitions covered elsewhere on the Relecura Blog by clicking through the links below.
The dilemma of where, when, and how much to invest in the innovation space is a critical factor...Know More
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Management of IP assets is costly and labor-intensive. Relecura offers classifier tools for categorizing and organizing data automatically...Know More
Relecura’s forte is its flexibility and adaptability to address specific problems and close-fitting solutions. The basic problem is that innovators are often not able to identify the industrial and commercial significance of their innovation as due diligence takes long days of analyses, necessitating a deviation from their regular and familiar activities. And it is a tedious iteration process. The latest custom AI capabilities help you assess the commercial value of innovation and technical due diligence can be automated to yield meaningful and immediate results. The repetitive tasks could be automated, and your time and energy could be devoted to strategic missions.
Management of large Innovation data is costly and labor intensive. Relecura offers AI-powered classification tools for categorizing and organizing data automatically and instantly. Automated Categorization against suitably chosen training documents keeps your innovation portfolio updated and lucidly classified, amenable to instant analyses.
Relecura offers fully automated custom AI solutions to track and explore developments in different technology areas. You can stay updated on the latest developments in different companies and technologies of your interest, which facilitates intelligent decision-making.
Competitive intelligence is a prerequisite for strategic decision making. Relecura provides tools to track the innovation and publication dynamics of your competitors, based on which you can prioritize your innovation initiatives and thus hone up your competitive edge.
Relecura uses white space analysis within its product platform known as the TechTracker, an AI-powered tool that provides insights on various technological trends and offers a peep into your competitor’s patent arsenal. Additionally, it helps you keep track of emerging organizations and technologies to help you manage your budgets and investments, optimally.
“Relecura helps us remain innovative by allowing us to see where the competition is playing through the landscaping tools. It lets us see where there are new opportunities and helps us focus in on those areas in an intelligent way.”
“Relecura helps us ride the crest of innovation wave keeping a competitive edge.” It helps us identify the white spaces and where the opportunities are.”
‘Our policy decisions regarding the focus areas of research and investment are being taken based on the insights offered by the custom AI tool, TechTracker, which offers a clear picture about the emerging technologies, companies, and the white spaces on the technology landscape of the key players. This helps us optimize resource utilization and maximize returns,’
‘The Classifier tool, introduced by Relecura, is indeed useful in managing and updating large datasets. After having subscribed to that AI-powered tool, in-house big data management and analyses have become easier and hassle-free.”
“Relecura platform is fueled by the latest technologies, and the tools that the platform hosts make our in-house innovation management smooth and accurate, in addition to being synchronized with the global technology frontline.”
Make faster, better technology decisions with Relecura
Our professional services offer training and support to minimise time-to-value on the Relecura platform and make more timely, confident IP decisions