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Report: U.S. Companies Led AI-Tech Acquisitions 2014-18

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Report: U.S. Companies Led AI-Tech Acquisitions 2014-18

.Leading data and analytics company, GlobalData, released a report this week highlighting companies that dominated the artificial intelligence-tech space from 2014-2018. In the report, four out of five top acquirers were U.S. based: Facebook, Microsoft, Apple and Splunk. These companies represent a combined total of 30 acquisitions during the time period studied. Accenture made the list as the only non-U.S. based company, representing six acquisitions total.

“Technology companies have been the dominant deal makers in the AI space. However, with artificial intelligence making inroads into diverse sectors, the buyer universe in expanding and the space is also attracting investments from non-technology companies,” said Aurojyoti Bose, Financial Deals Analyst at GlobalData.

Top Deal Makers-Payment Tech_V2

“The high number of American firms attracting investments in the AI space is a testimony to the country’s dominance in AI technology. The recent launch of American AI Initiative program also augurs well for the development of the sector or start-ups operating in this space,” added Bose.

Additional insights in the report confirm the U.S. as a leading region for targeted acquisitions, representing 70 percent of those acquired by the top five in the list. Regions closely following include the UK, China, India, Canada and Israel due to the talent pool and innovative technology offerings.

Top Deal Makers-Payment Tech_V1 Table

“With increasing adoption of AI across sectors, this space is bound to witness growth in an already burgeoning M&A activity. Corporates are extensively evaluating options to integrate AI in their business operations and automation initiatives. Going forward, AI solutions will be an integral part of their strategies,” Bose concludes.

Source: GlobalData

Adobe to Close Its China Research & Development Center

Mountain View, CA – Adobe Systems has said it will shutter its research and development center in China because of what the US software giant says are the country’s “increasingly unfavorable” business conditions.

 

The Beijing facility opened its doors on October 2008 with more than 300 people involved in developing software products specifically designed for the Chinese market.

The process of closing down the center will reportedly continue through the end of the year.

 

Lay-offs have already started with about 300 people likely to face job cuts. Some 30 employees, the company said, will be relocated to the company’s headquarters in Northern California or to branch offices in India.

 

“We are committed to China as a long-term market, and will continue our sales presence nationally as always,” the company said in a statement released to the press.

 

The move, it said, “will not affect Adobe’s overall level of investment in R&D and is not an indication of financial performance in China or worldwide.”

 

Adobe did say it would, however, maintain its Chinese sales offices in Shanghai, Beijing, Guangzhou, Shenzhen, Hong Kong.

 

The Silicon Valley-based company is just one of several US-based high-tech firms that have come under increasing scrutiny by the Chinese government over allegedly illegal business practices.

 

Microsoft and Qualcomm are currently being probed, while Adobe recently had its office in Beijing raided by Chinese officials as part of an “anti-monopoly investigation” aimed at its ‘Office’ suite of programs and ‘Windows’ operating system, which is used on the vast majority of computers in China.

 

The head of the government agency investigating Microsoft for what it calls “monopoly actions” said last month that the probe includes the way the US giant distributes its media player and browser.

 

Speculation by industry analysts draws a connecting line between the investigations by Beijing and the US government’s indictment earlier this year of five members of a Chinese military unit for allegedly hacking into the computer systems of several major US companies to steal trade secrets – a charge the Chinese government vehemently denies.

 

09/29/2014

FDI in China Drops to New Low; Anti-Trust Actions Blamed

Los Angeles, CA – China attracted $71.1 billion in foreign direct investment from January to July, down 0.4 percent on the same period in 2013, with FDI in the country reaching $7.8 billion in July alone, the first decline in overseas capital inflow in 17 months.

The slashing of spending in China’s manufacturing sector by companies from the US, Japan and the European Union is being blamed, primarily, on an increase in Beijing’s recent crackdown on foreign companies alleged to be engaging in “anti-competitive” business practices.

Over the past year, China has taken action against a number of ‘big ticket’ foreign companies, accusing them of breaking the country’s anti-trust regulations, which many feel are opaque and in violation of World Trade Organization rules.

Most recently luxury car brand Mercedes-Benz has been accused of manipulating prices for after-sales services in the country, while Beijing has imposed fines on milk powder companies including Mead Johnson Nutrition Co and Danone SA, alleging breach of its anti-monopoly laws.

China has also launched a probe into US-based Microsoft and chip maker Qualcomm over anti-trust claims, while several pharmaceutical companies including GlaxoSmithKline are facing probe in the country over alleged corruption and price fixing.

The probes have raised concerns among foreign investors that the country is targeting foreign firms operating there in an effort to, as one source out it, “flex its muscles.”

According to the Ministry of Commerce in Beijing, though, the anti-trust investigations aren’t responsible for the drop in FDI. Instead, the agency said, the “volatility of FDI” is a natural reaction to the country’s “efforts to balance the economic structure.”

The monthly decline “is not sufficient enough to reflect the general trend. It must not be linked to the anti-monopoly probes into some foreign invested companies or be associated with other baseless speculations,” said Commerce Ministry spokesman Shen Danyang.

“All market players should operate their business according to the law,” he added. “They should be punished according to the law and be subject to appropriate legal penalties if they violate the law.”

Beijing, he said, “expects foreign investment to keep a steady growth in the coming years and total FDI in 2014 to remain at a similar level with last year.”

08/21/2014