Two deals that illustrate how much our world is changing!

Two separate deals, both announced within hours of each other on the same day, illustrate how much our world is an ever changing place as a result of technology and the growth in consumer spending power of younger generations.

The first deal is Samsung Corp’s USD 8bn acquisition of Harman Industries, and the second deal is Estee Lauder’s USD 1.45bn acquisition of Too Faced. The global electronics company is pursuing Harman, its largest acquisition to date in order to give itself “a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics”. As our world becomes ever more connected, the need for consumers to be able to continue with that connectivity in our cars is driving a greater use of electronics and software within in them. Smartphones paved the way for us to be constantly connected and the first adopters of this were the younger generations, especially the “millennials”. This brings us neatly on to the reported rationale behind the Estee Lauder/Too Faced deal. Too Faced is a typical “growth orientated” brand capitalising on its ability to attract younger and trendier shoppers both online and in selected retail outlets. This clientele of “millennials” has attracted Estee Lauder in to pursuing their biggest deal yet in order to maximise upon the growth potential these “millennials” bring.

Two very different deals in terms of the sectors in which they sit, but the underlying driver for both deals is growth, and in wanting to do so both acquirors have looked at extending their reach to a logical place. I can see it now, you will be driving your car, your smart phone will ring to remind you to place your order for your latest make up requirement, and your self-driving car will be able to take you to the nearest destination from which you can collect it!