November 3, 2016

Tech Mergers Rise In Third Quarter 2016

2016 is proving to be another big year for tech mergers.

Given that 2015 was a big year for tech mergers, many have wondered if this year could possibly live up to that precedent. 

New data suggests that merger and acquisition activity is indeed keeping pace.

Enterprise Tech reported that mergers rose in the third quarter of this year. It cited MergerMarker, which counted 666 deals that totaled $179.6 billion in value. This marked a 39 percent increase over activity recorded at this time last year.

It appears that the markets for the Internet of Things and semiconductors are proving to be ripe for merger activity. For instance, one of the largest deals was when SoftBank Group acquired U.K. processor intellectual property vendor ARM Ltd. for $30.1 billion. SoftBank said that this merger would allow it to better target the growing Internet of Things market and create more products that can stay connected. In addition, the decision to go forward with the deal occurred just after the U.K. voted in a referendum to leave the European Union, which may have played a role.

Another major deal that occurred this quarter was when Analog Devices Inc. chose to purchase Linear Technology Corp. for $13 billion. The former is a Massachusetts-based company that specializes in signal processing chips, and the latter is an analog chip maker.

There are many strong areas in the tech market right now, and numerous opportunities to find partners that can help your business chart a path forward. A mergers and acquisitions firm can help you negotiate a great deal that will put your company on solid footing for the future.