Deep Analysis and Connie Moore call the news of a BPM vendor buying Jidoka a "wake-up call".? However, they were buying an 8 person software company out of Spain, not buying a market leading RPA firm.? This is really all the low-code and digital process automation firms can buy, because the valuations of the big RPA firms are larger.? This isn't the first time either - a few years ago, Pega with great foresight, bought OpenSpan, when prices were more reasonable.
I think it is more likely that RPA firms will use their (arguably inflated) equity capital or cash to buy nascent process automation companies. Witness UiPath's acquisitions in 2019, for example.? While consolidation might make sense, the valuations make that pretty hard to make happen overall.
For the moment, I can't imagine that buying you're own RPA firm is a good strategic move for a process company.? Is someone supposed to abandon one of the major RPA software providers for Jidoka? Or another, similarly nascent tool?? Or would they be better served buying from one of Horses for Sources top 10?
I think the general trend analysis is correct, and Connie is one of the best in the business, but the valuation analysis needs to factor into the equation.? It's hard for a company worth a couple of billion to acquire a company worth $7B.? If RPA valuations were under $1B they would have all ben snapped up by now.