M&A Market Dynamics – Software & Technology
- Software and Technology M&A spending last year soared to its highest level over the last fifteen years, despite the macroeconomic impact caused by COVID-19. Continuing its momentum gained in the third quarter of 2020, Global Tech M&A activity experienced a Quarter-over-Quarter increase of 34.3% in aggregate deal value ($278B), with 1,137 transactions announced in the fourth quarter.
- Spending through the final six months of 2020 was six times that of the first half of the year as market sentiment recovered after the economic shut down experienced during the second quarter.
- Driven by strategic acquirers’ demand and Wall Street’s confidence in technology assets, the final quarter of 2020 concluded with a record 46 $1B+ transactions, accounting for more than 88% of total deal value.
Sector Spotlight – Workplace Productivity
2020 will forever alter the personal and professional lives of most living around the world. This year brought about significant changes in how the business world operates. Whether the result of a mandate or the choice of an employer to promote social distancing, remote work was put to the test as millions of employees transitioned away from the office.
These moves meant that employees set up at dining room tables, in bedrooms, or in home offices. Organizations faced a fundamental shift that they may never have otherwise confronted and were forced to address technology, accessibility, connectivity, security, productivity and many other considerations in order to continue building their business.
In a year where positive outcomes seem few and far between, in this regard the technology industry of 2020 may be viewed as a springboard for the “new normal”.