Disruption, Competition to Fuel Tech M&As in 2017

By Dennis McCafferty

A significant share of IT companies plan to pursue merger and acquisition deals in the next 12 months, with many currently exploring five deals or more, a new survey from EY finds. However, compared with a year ago, a sharply declining number of these execs indicate that the M&A market will improve over this period, according to the survey of 255 tech industry C-level leaders and other senior execs. Still, as corporate earnings are expected to remain robust and organizations face technology disruption and increased competition from outside the sector, survey respondents indicate that M&As remain a key growth option. "It's a complicated world for deal-makers—even today's deal fundamentals are mixed in this report," Jeff Liu, global technology industry leader for transaction advisory services at EY, wrote in the report. "At the same time, executives … see competition coming from within and outside their own sector—including competition for talent. … As tech and non-tech companies alike are being disrupted by innovative digital technologies—as they face the same unforgiving economic and business environment—they are turning to M&As in search of solutions." We look at key takeaways from the EY study.

This article was originally published on 2016-11-02