The continued decline in traditional mergers and acquisitions in the technology industry supports the trend of consortium-based minority investments and patent acquisitions. Deal activity will continue to be driven by divestitures and focusing on core business revenue generators.
US technology M&A insights. Mergers and acquisitions (M&A) activity across the US displayed signs of a slowdown in the second quarter. In spite of a drop in volumes from comparable periods, technology-focused acquirers were still among the most active in the market, generating approximately 21% of total US deal volume in year-to-date 2012.
A combination of factors contributed to the decline as the traditionally busiest acquirers appear to have switched gears toward integrating large acquisitions closed in the past year, increased their acquisitions of intellectual property (IP) vs. whole companies and focused on identifying potential noncore assets to shed in the coming months.