Tech M&A Deal Value Nearly Doubles in Q2

By Dennis McCafferty

Tech industry merger and acquisition activity rose significantly in the second quarter of this year, according to recent research from PwC. The "U.S. Technology Deals Insights Q2 2016" report shows overall M&A deal value nearly doubled compared to this year's first quarter with much of this led by the internet and software sectors. The actual number of M&A transactions didn't rise dramatically, meaning the surge in deal values was driven by multi-billion dollar "megadeals," such as Microsoft's acquisition of LinkedIn. PwC expects this trend to reverse for the rest of 2016, with more deals made but smaller individual values. "Heading into the second half of the year, we continue to expect downward pressure on valuations, leading to an increase in deal volumes … from both traditional technology, and new non-digital, acquirers," the report read. PwC based its research upon transactions data compiled by Thomson Reuters, along with additional, independent research. The deals reported here reflect both disclosed and undisclosed deals, with "undisclosed" meaning those deals that have been announced, but not had their valuations reported yet.

This article was originally published on 2016-08-05