US Technology M&A insights

January 2013
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US Technology M&A insights

At a glance

Technology businesses are adapting to the demand for cloud-based services and consumer-oriented products while shedding non-strategic assets. With improved credit terms for financial buyers and available capital, the technology industry may experience a wave of divestitures in 2013.

Is the technology industry poised for a wave of divestitures?

Over the past 15 years, the technology industry has experienced a high volume of M&A activity. In fact, technology M&A has exceeded any other industry, largely fueled by a constant demand for innovation and a decade-long period of consolidation.

Consolidation, current macroeconomic environment and the shifting technological landscape as cloud-technologies have permeated the industry have caused technology companies to reconsider current strategies to align their businesses for the future. Technology businesses are adapting to the demand for cloud-based services and consumer-oriented products and looking to shed assets that no longer meet strategic needs. With improved credit terms for financial buyers and an immense amount of capital waiting to be deployed in the coming year, the technology industry may be poised for a wave of divestitures in 2013.

There is a great deal of value to be unlocked through divestitures in today’s market, but proper preparation to capture value takes time. To learn more about our view of divestiture activity in the technology industry and to find links to publications on proper divestiture preparation, download our recent M&A insights.