Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.
- Full-year aggregate M&A value was US$188.2b, a 65% jump from US$114.1b 2012
- Cloud/SaaS and smart mobility drove the most deals in Q413
- Technology M&A expected to be strong in 2014
NEW YORK, Feb. 18, 2014 /PRNewswire/ -- 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.
Joe Steger, EY's Global Technology Industry Transaction Advisory Services Leader, says:
"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."
The report identifies the following key trends and deal drivers:
As the late-year momentum of 2013 suggests, a confluence of factors are coming together to indicate that 2014 will be a strong year for technology M&A.
Deal volume in the last two quarters of 2013 averaged 711 deals per quarter, compared with 644 deals per quarter in the first half. And second-half aggregate value totaled US$118.4b , compared with US$69.8b in the first half. Further, deal making may be continuing into the first quarter of 2014 with several big-ticket deals already announced in Q1 2014, normally the quietest quarter of any year.
Steger concludes: "Technology companies that haven't adopted technologies such their business to address the five disruptive megatrends of mobile, social, cloud, big data and accelerated technology adaptation quickly enough may find themselves at a crossroads, with non-core or underperforming assets in need of divestiture. Separately, as technology permeates other industries, those industries are likely to continue increasing their role in technology M&A."
Notes to Editors
About the report
Global technology M&A update:
October-December 2013 and year in review is based on EY's analysis of The 451 Group M&A KnowledgeBase data for 2012 and 2013. Deal activity and valuations may fluctuate slightly based on the date the database is accessed. The full report is available at www.ey.com
EY's Global Technology Center
EY's Global Technology Center (GTC) is a network of 15,000 technology practice professionals from across our global member firms, all sharing deep technical and industry knowledge. Our high-performing teams are diverse, inclusive and borderless. Our experience helps clients grow, manage, protect and when, necessary transform their businesses. We provide assurance, advisory, transaction and tax guidance through a network of experienced and innovative advisors to help clients manage business risk, transform performance and improve operationally. Visit us at ey.com/technology.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
This news release has been issued by EYGM Limited, a member of the global Ernst & Young organization that also does not provide any services to clients.
©2012 PR Newswire. All Rights Reserved.