Corporate Giants Mining L.A. For Middle-Market Companies.Local merger activity slowed further during the third quarter ended Sept. 30, but more corporate giants are becoming active buyers of L.A.-area companies, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. data analyzed for the Business Journal by Mergerstat LP, a Los Angeles-based research firm. Giants like Hewlett Packard Co., Intel Corp. and Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. Inc. -- which until recently had generally ignored the $50 million-to-$ 100 million deals that characterize L.A. action -- are now lowering their sights. "Where there is good technology and good people, the multibillion-dollar giants are going for smaller deals for amounts they used to consider rounding errors," said David Barnes David Barnes is the name of a number of people:
Some locally based companies also were active buyers. The quarter's biggest deal was Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co.'s $3 billion acquisition of Fox Family Worldwid from News Corp. Ltd. Other L.A. buyers were Avery Dennison Avery Dennison Corporation (NYSE: AVY) produces pressure-sensitive materials (such as self-adhesive labels), office products, and various paper products. R. Stanton Avery founded Avery in 1935. Avery Dennison Corporation was created in 1990 by merger of Avery and Dennison. Corp. and Jacobs Engineering Group Jacobs Engineering Group Inc. (NYSE: JEC), a publicly traded company with annual revenues approaching $7 billion, provides professional technical services. Headquartered in Pasadena, CA, Jacobs offers support to industrial, commercial, and government clients across multiple Inc. Overall, however, the volume of L.A. deals continued to plummet, reflecting a deepening of the slowdown that began in early 2000. A total of 111 deals involving Los Angeles-area companies were announced in the third quarter, a 19.6 percent drop from the prior quarter, Mergerstat reported. The 26 L.A. deals announced in the third quarter for which values were publicly disclosed had an aggregate value of $4.2 billion, translating to an average of $161.5 million per deal. That's down from the $194 million average in the prior quarter, but remains high relative to the average deal values in recent years. Not all third-quarter action was driven by big companies. Acorn Technologies Inc., a fledgling Pacific Palisades Palisades, cliffs along the west bank of the Hudson River, NE N.J. and SE N.Y., extending from N of Jersey City, N.J., to the vicinity of Piermont, N.Y., with a general altitude of from 350 ft to 550 ft (107–168 m). outfit funded by investors like Peter Norton Peter Norton (born November 14 1943) is an American software publisher, author, and philanthropist. Biography Norton was born in Aberdeen, Washington, U.S., North America. He attended Reed College in Portland, Oregon, graduating in 1965. , bought Intellectual Capital Management Group of Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. . That acquisition is aimed at helping Acorn acquire intellectual property from Fortune 500 corporations. Acorn buys inventions from industry and academia, develops them and then sells off the licensing rights. Industry sectors active in the quarter included technology, media and health care. A few local investment firms that have remained active throughout the slowdown continued to announce new deals in the quarter. Those included Gores Tehnology Group, which bought the human resources information unit of Fiserv Inc., and Platinum Equity Holdings, which bought the access products division of ADC Telecommunications Inc.
Big 3rd-Qtr. L.A. Deals
Buyer Acquired Price [**]
Walt Disney Co. Fox Family $3000
Worldwide
Mitsubishi Corp. Occidental Berau 478.4
of Indonesia [*]
Homestore.com iPlace Inc. 86.5
Atlas Air Worldwide Polar Air Cargo 84
IAWS Group Plc La Brea Bakery 55
(*)Formerly a unit of L.A-based Occidental Petroleum Corp.
(**)In millions
Source: Mergerstat LP
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