Tech Industry M&A Market Cooled Off in 2015

By Dennis McCafferty

A hot fourth quarter salvaged what otherwise would have been a significantly down year for tech industry mergers and acquisitions (M&As), according to new research from PwC. Its "U.S. Technology Deals Insights" report shows that the number of deals and their estimated value surged in the fourth quarter. Although M&A activity in 2015 still trailed that of 2014, it nearly doubled within the semiconductor and IT services sectors. As for what's ahead, expect IT convergence, the Internet of things and the cloud to continue to drive M&A activity. "The tech landscape has become increasingly complex as companies expand vertically into new categories to enlarge their addressable markets and enhance competitive positions," the report reads. "The end result is an acceleration of overlapping relationships among vendors as a legacy customer today could simultaneously become supplier and competitor tomorrow. Fostering partnerships with best-of-breed companies is now more important than ever before." Highlighted in the report are the top five overall tech M&As for 2015. PwC based its research upon transactions data compiled by Thomson Reuters, along with additional, independent research.

This article was originally published on 2016-02-23