Tech Companies’ Appetite for Acquisition Increases

thumbnail Tech Companies’ Appetite for Acquisition Increases

Tech acquisitions Busy Tech Buyers 75% of tech companies completed at least one M&A deal in 2014, and 81% are expected to initiate at least one M&A in 2015 while 11% anticipate pursuing 11 or more. Big Money One-half of survey respondents say the average enterprise value per acquisition will be $250 million or less, […]

Apr 21, 2015
Channel Insider content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

Tech acquisitions

1 - Busy Tech BuyersBusy Tech Buyers

75% of tech companies completed at least one M&A deal in 2014, and 81% are expected to initiate at least one M&A in 2015 while 11% anticipate pursuing 11 or more.

2 - Big MoneyBig Money

One-half of survey respondents say the average enterprise value per acquisition will be $250 million or less, and 46% indicate that it will be between $250 million and $999 million. Another 4% predict it will be at least $1 billion.

3 - Winning WaysWinning Ways

54% said a top factor for a successful M&A is a well-executed integration plan, while 21% cited the correct valuation of a deal.

4 - Enhancement EffortEnhancement Effort

Beyond increasing revenue or cutting costs, 50% said access to intellectual property and/or talent is a primary reason for future tech acquisitions. 42% said they’re seeking to “bolt on” or “tuck in” acquisitions to enhance new products.

5 - Trendy TrioTrendy Trio

54% said that mobile will be a key tech trend that drives M&A activity in 2015, while 48% cited the cloud and 47% data/analytics as key trends.

6 - Deep PocketsDeep Pockets

39% said an abundance of cash reserves will fuel deal activity this year.

7 - Assessment GapAssessment Gap

67% said the valuation disparity between buyers and sellers will present major challenges in deal making this year, while 39% say the identification of suitable targets will.

8 - Due DiligenceDue Diligence

32% said their tech companies review their portfolios of business units, products and/or assets for potential acquisition targets on a monthly basis, and 27% do so quarterly.

9 - Growth StrategiesGrowth Strategies

Outside of M&A, 44% said their tech companies will focus on new product development to increase revenues and 22% will consider expanding geographically to do so.

10 - Parting SentimentsParting Sentiments

66% said the most preferred exit strategy for companies will be a sale to a strategic buyer and 11% said a preferred exit will be a sale to a financial buyer.

Recommended for you...

LevelBlue & Kompingo to Bring Managed Security to UK MSPs

LevelBlue and Kompingo partner to deliver scalable managed security to UK MSPs and MSSPs, bridging the cyber skills gap with expert threat protection.

Franklin Okeke
Jul 24, 2025
Malwarebytes Launches New Email Security Module

Malwarebytes adds AI-powered email protection to ThreatDown, unifying endpoint and email security for MSPs via IRONSCALES tech and Nebula console.

Jordan Smith
Jul 23, 2025
Galactic Advisors on Addressing Vulnerabilities in the Channel

Galactic Advisors uncovered critical flaws in Kaseya’s Network Detective; both firms moved fast to patch issues and highlight MSP risk assessment best practices.

Jordan Smith
Jul 23, 2025
Edge AI Gets a Generative Boost with Hailo‑10H

Hailo-10H brings on-device GenAI to the edge with ultra-low power, sub-second latency, and full multimodal support—no cloud, no compromise.

Allison Francis
Jul 23, 2025
Channel Insider Logo

Channel Insider combines news and technology recommendations to keep channel partners, value-added resellers, IT solution providers, MSPs, and SaaS providers informed on the changing IT landscape. These resources provide product comparisons, in-depth analysis of vendors, and interviews with subject matter experts to provide vendors with critical information for their operations.

Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.