And we should expect to see plenty more next year, according to a survey by law firm Morrison & Foerster (which, in a rather hip-hop fashion, shortens its name to MoFo).
Half of dealmakers (47 per cent) expect tech mergers and acquisitions (M&A) activity to increase during the next six months, compared with 20 per cent forecasting a decrease.
Tech, media and telecom (TMT) M&A activity in 2016, according to 451 Research:
- Q1: 1,039 deals worth $73bn
- Q2: 1,043 deals worth $110bn
- Q3: 910 deals worth $153bn
“An increasing number of companies have stepped up their blockbuster deal activity as 2016 has progressed,” said Robert Townsend, co-chair of MoFo’s global M&A practice group. “As a result, tech M&A spending is on track for the second-highest annual total since the most recent recession falling only short of the high bar that was set last year.”
It is encouraging that so many of our survey respondents expect even greater deal activity over the next six months. However, it is also important to note that although almost half of dealmakers shared that the current M&A cycle is still only its mid-point, another 39 percent think it is close to the end of the cycle.