Re-energized Technology corporates were joined by non-digital and private equity buyers to fuel unprecedented demand for technology businesses. Surpassing the 2015 high-water mark, 2016 turned in a new record for Technology M&A with a total of $323.5 billion in value, up 3% from the prior (record) year.
Software was far and away the story of 2016, with a number of megadeals dominating headlines. Cloud, cyber, AI and IOT all played their parts as the most sought-after segments. Although slightly less active, megadeals in Semiconductor and IT Services allowed these sectors to remain relevant.
Looking ahead to 2017, there are a variety of uncertainties on the political and economic horizon. Nevertheless, we expect a continuation in the core technology acquisition drivers of (1) a focus on Software (Cloud/Cyber/AI) and (2) more potential buyers at the table (PE/non-digital/cross-border) to continue deal momentum.