Tech M&A in Q3 lifted by mobility, cloud to post-dotcom bubble record

Global technology merger and acquisition deals have rebounded to a new post-dotcom bubble high in the third quarter on the back of renewed confidence in the economy, according to Ernst & Young (EY).

Aggregate disclosed deal value for the three months ended September was US$71.2b, which represented an increase of 152 percent on-year and 113 percent sequentially, noted its study released Tuesday.

Notably, corporate aggregate deal volume bounced back from a four-year low last quarter of 570 deals to 644 deals.

Mobility and cloud, were two of the five technology megatrends underlining most of the value in Q3's transactions. The other megatrends identified by EY comprise social networking, big data analytics and accelerated technology adaptation).

Other contributing factors included continued favorable PE conditions, sector consolidation, rising information security concerns, increasing divestitures and accelerated technology adaptation in certain industries, particularly financial services, health care information technology, and advertising and marketing, according to EY. 

Deal-making confidence is returning to global technology M&A, as evidenced by the record value and renewed volume growth in the third quarter,  said Joe Steger, EY's Global Technology Industry Transaction Advisory Services Leader.

"As returning confidence overcomes increased political instability, macroeconomic uncertainty and valuation gaps, we will continue to see steady growth in technology M&A volumes," Steger added.

EY expects moderate growth in technology deal volumes for the next few quarters.