M&A Activity Remains Robust, Largely Influenced by Private Equity

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Technology M&A continued its voluminous trends through the first quarter of 2017. According to Venturebeat, there were 638 technology transactions in Q1’17, up from 599 in Q4’16. Additionally, technology-focused private equity firms announced more deals in Q1’17 than any opening calendar quarter since the end of the Great Recession. Contributing to this surge in private equity activity is both an increasing number of new technology-oriented financial sponsors and an overall expansion of the total pool of “dry powder” available for acquisitions. Strategic acquirers also continue to remain active; however, the once very wide gap is contracting as private equity firms continue to accelerate their transaction volume.

Q1’17 Software & Services market highlights include:

  • Infor receives $2.5 billion investment from Koch Equity Development, acquires Ciber Segment;
  • Cisco achieves further penetration in IoT with purchase of AppDynamics;
  • Blue-Chip acquirers embrace the machine learning explosion; and
  • Tech-focused private equity and venture capital firms remain aggressive and well-funded.

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