The FINANCIAL — Opportunity and disruption combined in 2013 to drive global technology M&A aggregate value up 65% to a post-dotcom-bubble record of US$188.2b, according to EY’s Global technology M&A update: October–December 2013 and year in review report.
Companies pursuing strategic growth opportunities related to the five transformative megatrends, which include mobile, social, cloud, big data analytics and accelerated technology adaptation, drove big ticket transformative deals in 2013, as many established companies found themselves at a crossroads by the disruptive power of these same megatrends.
Big-ticket deals (of US$1b or more) increased in number to 36 in 2013, up from 28 in the prior year, and more than doubled in value, to US$122.6b in 2013 compared with US$51.8b in 2012. Full-year average value was US$283m, up 51% from US$188m in 2012, according to Ernst & Young Global Limited.
“Big, transformative deals returned in 2013, whether driven by the strategic growth opportunities emerging from customer demand related to the five transformative technology megatrends of mobile, social, cloud, big data analytics and accelerated technology adaptation, or the opportunity to re-invigorate companies disrupted by those megatrends. A surge in confidence in the global economy by technology executives and the disruption being caused by the megatrends, despite recent stock market volatility, continued political instability and lingering valuation gaps, indicate 2014 will be a strong year for technology M&A,” said Joe Steger, EY’s Global Technology Industry Transaction Advisory Services Leader.
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