Technology M&A Insights - what's generating deals in the Tech sector? 2011

Welcome to the 2011 edition of Technology M&A Insights. This annual report by PwC¹ forecasts the outlook for M&A activity in the global technology sector in 2011, building on our analysis of the trends emerging from deals completed in 2010. We identify the underlying themes driving deal activity, look at which players are active in the acquisitions market, and analyse the market segments they are focusing their attention on.

The M&A market is starting to recover with a significant rise in the value of global technology deals completed in 2010 – €76bn, up from €37bn in 2009. There was also a noteable rise in the volume of completed deals, up 32% from the lows of 2009 – more high quality assets are now being brought to market as sellers seek to take advantage of the presence of cashrich corporates with a renewed appetite for mega-deals; aggressive private equity buyers and improving capital markets.

We are already seeing a change in deal dynamics as the appetite for mega deals returns to the market. The number of pre-emptive deals is on the rise as cash rich buyers look more aggressively at deal origination rather than relying on competing in traditional auction processes – growth is firmly back on the corporate M&A agenda. Private equity players have returned to the market as they are increasingly under pressure to deploy capital. The willingness of banks to provide debt financing for quality assets is helping PE’s return to the market, both as acquirers and as providers of growth capital.