A Trillion-Dollar Year For The Tech M&A Market

0
A Trillion-Dollar Year For The Tech M&A Market

Since tech acquirers discovered last summer that they could still do deals during a pandemic, they have spent at a historic rate – ever-larger acquisitions at ever-higher valuations by pretty much every type of buyer. The trillion-dollar shopping spree over the past 12 months has been a run for the ages, and shows no sign of slowing. A little bit of historical data indicates the unprecedented heights of the recent rebound.

Get The Full Walter Schloss Series in PDF

Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 2021 hedge fund letters, conferences and more

According to 451 Research's latest quarterly tech M&A report, of the roughly $6.8 trillion dollars' worth of tech deal flow chronicled over the past two decades in 451 Research's M&A KnowledgeBase, a massively outsized $1.1 trillion of that has come in just the past year. This means that although the past 12 months only account for about 5% of the total time covered in our data, a whopping 16% of overall tech M&A spending has come just since last summer.

How To Invest In India’s Growth with INDF’s Amit Anand

IndiaValueWalk's Raul Panganiban interviews Amit Anand, Co-Founder of INDF, and discusses his approach to investing and why India Financials are very attractive today. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with INDF's Amit Anand


Tech M&A Market Shows Record Activity

Key highlights from the report include:

As we noted in our just-published report on Q2 – which, once again, saw spending soar to about twice the level of a typical quarter – the record activity is showing up in virtually all aspects of the tech M&A market.

  • SPACs: Throughout the previous decade, blank-check companies acquired an average of a dozen (mostly unknown) tech vendors each year. Already in 2021, the M&A KnowledgeBase has recorded 97 acquisitions. Even more stunning: the combined enterprise value of this year's 'de-SPAC' deals totals $272bn.
  • Private equity: Although PE firms took a little longer to get going after the COVID-19 outbreak because of the residual damage in the credit market, they have made up for lost time. Two of the four highest-spending quarters by buyout shops in our database have come in Q4 2020 and the just-completed Q2 2021.
  • VC exits: The once-rare 'unicorn' transaction has become commonplace. Over the first decade of our data, the average year saw just a single sale of a venture-backed startup for more than $1bn. So far this year, thanks largely to wild SPAC activity, some 74 startups have booked billion-dollar exits.

tech M&A market

tech M&A market


About 451 Research

451 Research is the enterprise technology research unit of S&P Global Market Intelligence and was acquired by the division in December 2019.

No posts to display