US retains position as largest tech M&A market

US retains position as largest tech M&A market

In a recent survey by independent investment bank Mooreland Partners, it has been revealed that the US continues to be the largest tech mergers and acquisitions market and accounts for 50% of transactions.

The “Mooreland Partners H1 2015 Technology M&A Report” looked at cross-border deals, particularly those across the Atlantic. Over 2470 global technology transactions were surveyed which represented a 25% increase from H2 2014 and $416 billion in deal flow. This was reiterated by Peter Globokar, managing director at Mooreland Partners. “Our H1 2015 Technology M&A Report reveals that there was a significant increase in technology M&A volumes and value since the beginning of 2015. Cross-border deals including deals across the “Transatlantic Bridge” between the US and Europe represented a significant part of that increase,” Globokar mentioned.

He also highlighted that information about deals between the US and Europe can help businesses to be aware of where M&A is heading. “Our primary goal in publishing this research is to provide technology investors and entrepreneurs with the insights they need to understand how the exit market for their own business is evolving,” Globokar said.

The survey found that most technology acquirers came from the US and from the nine corporate buyers that made at least one acquisition a month, seven have headquarters in the US. However, Europe is more involved in cross-border transactions: 40% targeted by foreign buyers compared to the 15% of US companies that were acquired by a foreign buyer.

Transactions with a value of more than $500 million continue to grow as the report showed that 81 transactions were completed in H1 of 2015, in comparison to the 135 made in 2014. Despite this, activity so far in 2015 remains fragmented.

Since H2 2014, tech M&A has increased dramatically in the Asian market, with a 40% increase in Japan, 75% increase in China, 115% increase in South Korea and a 125% increase in Hong Kong.

Globokar believes that M&A activity will continue to grow which will be displayed in the H2 2015 report. “The Transatlantic Bridge is set to grow in strength during the second half of this year, as a result of a weaker Euro and ever growing cash piles held in Europe by US corporations,” Globokar said.