Research gauges 2014 tech mergers at more than $1 trillion
On this blog, we recently discussed 2015's ambitious start to the first quarter, but a new study about 2014 tech M&A activity puts the rapid growth into perspective. According to Tech World, the total value of mergers and acquisitions in the tech industry hit the $1 trillion mark last year.
"A lot of companies are hoping to be bought by tech giants like Google and Facebook, but buyers don't always come from where investors and entrepreneurs expect them to as our 2014 research shows," said Peter Globokar, managing director at Mooreland Partners, the firm that compiled the study. "There is a ground swell of increased technology M&A being transacted cross-border."
Here are some of the report's findings, by the numbers:
- 4,186: The total number of tech companies around the world that were sold in 2014.
- 14 percent: The rate of growth in tech mergers and acquisitions compared to 2013.
- $1 trillion: The total value of those deals between investors, entrepreneurs and their teams.
- 50 percent: The rate of growth for mergers and acquisitions valued over $500 million compared to 2013.
- 76: The total number of companies acquired by Google, Yahoo, Microsoft, Facebook and Twitter.
- 300: The report's count of European companies that were purchased by American buyers.
- 85 percent: The share of U.S. tech firms that were acquired by other domestic companies.
Mooreland Partners projects that trans-Atlantic deals will continue to grow in popularity in 2015 due to weakened European currencies and strong momentum among major buyers in the United States. With early reports about 2015 indicating a continuation of this M&A activity, companies seeking to buy or sell this year should contact an experienced M&A advisor to design a strong merger or acquisition strategy.