1. India Technology M&A
Activity Review 2013
May 2013
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2. Key
Trends
Cross border Tech M&A activity is
witnessing increased momentum
Start-up ecosystem is rapidly
growing to position India as a hub
of technology innovation
An evolving ecosystem of VCs/
Accelerators/ Incubators is further
supporting the growth
A
B
C
Key trends in Indian Technology M&A landscape..
Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT
All Rights Reserved

3. A
Cross border Tech M&A activity is witnessing increased momentum
44
56
36% Outbound
16% 48%
Inbound Domestic
15% Outbound
46% 39%
Inbound Domestic
Note: 1USA not considered in the list
• At an average of US$ 37 Mn, India is
witnessing 30 times increase in median
deal size since 2009
Total Tech M&A Deals
2009
2012
Key Inbound M&A Deals Over The Years
Acquired stake in
for $ 75 Mn
Acquired stake in
for $ 100 Mn
Source: Zinnov Analysis
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All Rights Reserved

4. Total Number Of Start-ups1 (2012)
Start-up ecosystem is rapidly growing to position India as a hub
of technology innovation
B
Note: 1According Angel List
25,883
USA
1,646
Canada
2,128
U.K.
600
Germany
1,326
India
492
Israel
231
China
152
Japan
Number Of Start-ups
growing in India at a CAGR
~15%
Famous Indian Start-ups have been nurtured
by MNC Talent
• Founded by ex Amazon employees
• Founded by ex IBM, TI and
Honeywell employees
• Founded by ex Yahoo employee
R&D Talent Pool Across 1,033 MNCs in India =
~235,000
Region % Start-ups
% MNC R&D
Centres
% MNC R&D
Talent
Bangalore 27 % 40 % 53 %
Mumbai Region 22 % 21 % 17 %
Delhi NCR 24 % 16 % 10 %
Hyderabad Region 13 % 11 % 13 %
Source: Zinnov Analysis
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5. C
An evolving ecosystem of VCs/ Accelerators/ Incubators is
further supporting the growth
No. of technology
incubators
10x
120+
No. of angel
networks >20
No. of jobs created 25x
400,000+
~ 20 Incubators/
Accelerators added in
2012 alone
~ $25 Mn early stage
annual funding provided
to start-ups in 2012
VC Funding has grown 2X
between 2009 and 2011
to reach ~$1.1 Bn
Technology
Start-ups funded
annually
60x
>250
Source: Zinnov Analysis Copyright (c) Zinnov/iSPIRT
All Rights Reserved

6. Cloud/ Big Data
Education
Mobile
Social Media
Productivity
E-Commerce
Healthcare
32%
29%
21%
18%
18%
14%
11%
Focus Area Of Indian Start-ups
49% of all tech M&A deals in
India in 2012-13 focused on
CLAMS1
The drivers are further converging towards a promising Indian
tech M&A landscape
Software and Internet
now account for 68% of
all M&A Tech Deals in
India
Note: 1Cloud, Analytics, Mobility and Social
Source: VCC edge, Zinnov Analysis
Copyright (c) Zinnov/iSPIRT
All Rights Reserved

7. Conclusion
India is likely to
emerge as a hub of
technology innovations
India to witness tremendous
growth in number of tech
companies of value to global
brands
Ecosystem collaboration &
community engagement required to
nurture the growth
M&A activity to gain
continuous traction
Source: Zinnov Analysis
Copyright (c) Zinnov/iSPIRT
All Rights Reserved

8. Appendix
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9. Note: 1Till 10th May, 2013
Total Tech M&A Deals
2 2 1 4
26
37 33 28
11
12
12
12 11
2
4
4 13 12
2
1
1
Hardware Software IT Services Internet Semi Conductor
2009 2010 2011 2012 20131
44 55 59 56 16
Deal Split By M&A Activity
16 15 11 8 8
7 16 16 26
1
21
21 25
22
7
Outbound Inbound Domestic
2009 2010 2011 2012 20131
44 55 59 56 16
Tech M&A Deal Trends
Source: Zinnov Analysis
Copyright (c) Zinnov/iSPIRT
All Rights Reserved

10. 5%
59%
27%
9%
Hardware Software IT Services Internet Semiconductors
Software industry emerging as key category for M&A
Tech M&A Deal Split By Industry
2009
44 Deals
2 Deals 26 Deals 12 Deals 4 Deals
10%
46%
20%
22%
2%
4 Deals 28 Deals 11 Deals 12 Deals 1 Deal2012
56 Deals
• IT services industry giants like Wipro now
exploring M&A route to enter new
markets/service lines rather than looking to add
topline revenue
Top Software Deals in 2012
Acquired 100% stake in
for $ 202 Mn
Acquired 100% stake in
for $ 176 Mn
Source: Zinnov Analysis
Copyright (c) Zinnov/iSPIRT
All Rights Reserved

11. Bangalore, Mumbai and NCR, top Tech M&A destinations
Tech M&A Deal1 Split By Location (2009 -2012)
Note: 1Only Inbound and Domestic M&A Deals considered.
Bangalore
Mumbai Region
Hyderabad
Delhi NCR
22
10
12
38
22
16
33
19
14
19
13
6
17
15
2
Chennai
Total Deals
Domestic
Inbound Deals
Top Outbound Deal
Destinations (2009-2012)
Location Number of Deals
California 6
Singapore 5
San Francisco 3
London 3
New York 3
Texas 2
Source: Zinnov Analysis
Copyright (c) Zinnov/iSPIRT
All Rights Reserved

12. Thank You
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