Technology M&A Deal Value, Volume Soar to Dotcom Bubble Heights



According to EY’s Global technology M&A update: July-September 2014, global technology M&A value and volume reached quarterly heights not seen since the dotcom bubble. These findings reflect the diverse influence of disruptive digital technology innovation across the global economy, according to the report.

The aggregate value of all disclosed-value deals set a new post-dotcom-bubble era highs of $73.7 billion, up 41% sequentially and 4% year-on-year (Y/Y). At 923 deals in total, overall volume also set a record for any quarter since 2000, rising 6% sequentially and 31% YOY.

The third-quarter report noted a confluence of multiple technology-specific and macroeconomic drivers that pushed global technology M&A to its latest post-dotcom-bubble highs. The search for growth in an uncertain global economy led to eight big-ticket cross-border deals with targets in the U.S., where economic growth is considered more certain.

Cross-border deal value soared 168% sequentially and 33% Y/Y to $32.7 billion, after three consecutive declines. At 332 deals, cross-border volume was up 51% Y/Y and 7% sequentially. Overall, corporate dealmakers increased aggregate value 40% sequentially and 9% Y/Y to $65.3 billion, and volume 33% Y/Y to 855 deals.

Jeff Liu, Global Technology Industry Transaction Advisory Services Leader at EY, said, “Technology corporate development teams stand at the intersection of rapid, disruptive innovation induced by the five technology megatrends and global economy uncertainty that has caused a sudden increase in equity markets volatility. Megatrend-related innovation drove the strategic dealmaking that led to several technology M&A records in 3Q14, but prolonged volatility could slow or even stall M&A growth. We will keep a wary eye on volatility, but we are certain of this much: the innovation driving technology M&A growth is not slowing down.”

To view the full EY report, click here.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com