Strong Q2 M&A Climate Expected to Continue Through 2014

M&A

1 - Increasing M&A DealsIncreasing M&A Deals

There was a total of $26.7 billion in transaction value conducted through 62 deals in the tech industry in the second quarter 2014, up from $14.3 billion from 36 deals in the second quarter of 2013.

2 - Stronger Software MarketStronger Software Market

There was a total of $4 billion in software transactions, coming from 20 deals in the second quarter of 2014, up from $1.5 billion from eight software deals in the second quarter of 2013.

3 - Internet Deals Were DownInternet Deals Were Down

There was a total of $2.5 billion from 15 Internet deals in the second quarter, down from $4.5 billion for seven deals a year earlier.

4 - Hardware-Driven DealsHardware-Driven Deals

There was a total of $9.5 billion from 11 hardware deals in the second quarter, up from $2.9 billion for nine deals a year earlier.

5 - Well ConductedWell Conducted

There was a total of $7.9 billion from seven semiconductor deals in the second quarter, up from six deals leading to $4.7 billion a year earlier.

6 - IT Service Deals IncreaseIT Service Deals Increase

There was a total of $2.7 billion from nine IT services deals in the second quarter, up from six deals resulting in just more than half a million a year earlier.

7 - Average Deal ValueAverage Deal Value

62 transactions were completed during the second quarter, for a total of $26.7 billion at an average deal value of $430 million.This is lower than the $510 million average for the past 12 months.

8 - Q2 Deal Value Up From Q1Q2 Deal Value Up From Q1

The total closed deal value increased by more than $1.1 billion from the first to the second quarter, but was overshadowed by the $47.1 billion deal value of in the fourth quarter of 2013.

9 - Drop in Billion Dollar M&A DealsDrop in Billion Dollar M&A Deals

Only four deals exceeded the $1 billion mark in the second quarter, including Microsoft’s $7.2 billion acquisition of Nokia’s devices and services business and Avago’s $6.6 billion acquisition of semiconductor manufacturer LSI. This is less than the average six $1 billion-plus deals to occur per quarter over the past 12 months.

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