KPMG LLP’s survey predicts M&A deal levels in 2017 will be steady from 2016, with the technology industry leading expectations for high activity. This follows from 2016’s profile for tech M&A deals, which had EY’s Global technology M&A report for Q3 2016 highlighting digital technologies as driving tech M&A deals for both tech and non-tech companies. Digital technologies that drove deals include internet of things (IoT), smart mobility, cloud/SaaS, big data, security, advertising and marketing technologies, connected cars, payment and financial technologies, gaming, and health care IT.
In Q3 2016, the average value per tech M&A deal was US$789 million, compared to US$273 million in the same quarter the previous year, and the aggregate deal value was US$155.5 billion, compared to US$65.4 billion in the same quarter the previous year. This was the third highest recorded aggregate quarterly deal value for tech M&A, falling behind only to Q4 2015 and Q1 2000, which had aggregate deal values of US$189.8 billion and US$228.4 billion, respectively.
In terms of deal volume, Q3 2016 had 911 deals, a decrease of 15% from the same quarter in the previous year. Thirty-two deals equaled or exceeded US$1 billion, with 13 from corporate tech buyers, 12 from private equity, and 7 from non-tech buyers.
The author would like to thank Larissa Leong, Articling Student, for her assistance in preparing this legal update.
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