Non-Traditional Acquirers Lead Technology M&A Activity in 2017

2017 witnessed a number of non-traditional acquirers stepping into the technology M&A space. These unconventional acquirers included retailers, consumer product companies, grocers, jewelers and more. We expect to see this trend continue and accelerate in 2018 as these unconventional acquirers look to diversify revenue streams and stay ahead of the innovation curve.

By most accounts, the recent tax reform is seen as a boon to enterprises, and we have seen that already with higher employee bonuses and rates of cash repatriation. The jury is still out, however, on the effect it will have on the private equity community using leverage, as the lower corporate tax rate will be offset by higher interest rates and an inability to deduct interest expense. In addition, while U.S. M&A will likely be aided by the tax reform, the Trump Administration will likely inhibit some cross-border M&A, as it has already done on two occasions, blocking deals from Chinese acquirers in the name of national security.