Tech M&A Deal Value Nearly Doubles in Q2
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Tech M&A Deal Value Nearly Doubles in Q2
The internet, IT services and software sectors took the lead in M&A deals for the second quarter, but overall there were more than a dozen deals exceeding $1 billion. -
Upward Trend
There were 414 (both disclosed and undisclosed) tech industry M&A deals in the second quarter, totaling $82.9 billion in value (for disclosed deals only), up from 380 deals in the first quarter, totaling $42.1 billion in value. -
Industry Sectors: Internet
There were 76 (undisclosed and disclosed) internet M&A deals worth $32 billion (disclosed only) in the second quarter of this year, compared with 59 deals worth $1.9 billion in the first quarter. -
Industry Sectors: IT Services
There were 111 IT services M&A deals worth about $19.7 billion in the second quarter, compared with 105 transactions worth $17.3 billion in the first quarter. -
Industry Sectors: Software
There were 170 software sector deals last year worth nearly $14.2 billion in the second quarter, compared with 174 deals worth $7.1 billion in the first quarter. -
Industry Sectors: Hardware
The hardware sector saw 36 M&A transactions totaling just over $8.5 billion in the second quarter, compared with 26 M&A deals worth $8.2 billion in the first quarter. -
Industry Sectors: Semiconductor
The semiconductor industry saw 21 M&A deals worth nearly $8.5 billion in the second quarter, up from to 16 deals worth $7.6 billion in the first quarter. -
Top Deal of 2016: LinkedIn
Microsoft's planned acquisition of LinkedIn, valued at $26.6 billion, topped the list of tech M&As in the second quarter. -
Quintiles Transnational and IMS Health
Quintiles, a contract medical research provider, and IMS, a health care information company, have agreed to merge. The deal is valued at $8.9 billion. -
HPE's Enterprise Services Unit
Hewlett Packard Enterprise announced that it was spinning off its enterprise services business into Computer Sciences Corp. The deal is valued $8.5 billion. -
Blue Coat Systems
Late in the second quarter, computer security company Symantec agreed to acquire cyber-defense specialist Blue Coat for $4.7 billion. -
Integrated Device Technology
Also announced in the second quarter, a group of Chinese investors is buying IDT, a mixed-signal semiconductor manufacturer, for $4.2 billion. -
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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.
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