The aggregate value of global technology mergers and acquisitions nearly doubled between the first and second quarters of 2011. This growth was driven primarily by industry consolidation and by ongoing disruptive innovation in areas such as cloud computing, smart mobility, Internet and mobile video, the smart grid and solar energy.
These are some of the highlights in the Global Technology M&A update, April – June 2011 from Ernst & Young, which reported that global technology M&A climbed to $52.1 billion in the second quarter of 2011, 92 percent higher than first quarter’s $27.1 billion and 69 percent higher than the year-earlier quarter’s $30.8 billion.
Two of the top ten deals resulted from the growth of smart mobile devices. One involves Internet and mobile video technology, which the acquirer plans to integrate throughout its line of business, consumer and entertainment products. The other is a provider of communications equipment to public networks which is acquiring a company whose software helps fixed-line and mobile networks operate more efficiently, enabling better management of increasing bandwidth demands.
“The high aggregate and average values of global technology companies’ strategic transactions in the second quarter — overcoming the quarter’s increasing macroeconomic uncertainty, unrest in the Middle East and the aftereffects of the earthquake and tsunami in Japan — are a testament to the power of the disruptive technology innovations occurring today and the high level of confidence in the future that’s held by many technology executives,” said Joe Steger, Global Technology Transaction Advisory Services Leader at Ernst & Young. “New waves of innovation, especially around smart mobility, cloud computing and social networking, are now influencing the development of the entire global economy.”
He added that although 61 percent of all disclosed value was concentrated in the top ten deals, there also was significant strength in deals of less than $100 million.
Ernst & Young’s Global Technology M&A update, April – June 2011 (PDF) – http://tinyurl.com/3n4usz3
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