Mooreland Partners Publishes Bi-Annual 2015 Technology M&A Report

Over 2,470 global companies acquired in H1 2015, marking a 25 percent sequential increase in global tech M&A deal activity from H2 2014 and $416 billion in deal flow

Aug 06, 2015, 07:30 ET from Mooreland Partners

LONDON, Aug. 6, 2015 /PRNewswire/ -- Mooreland Partners (http://www.moorelandpartners.com), the leading independent investment bank providing M&A and private capital advisory services to the global technology industry, today announced the publication of its H1 2015 Global Technology M&A Report offering unique insight into the flow of M&A transactions between continents, and in particular the transatlantic link. The report provides an in-depth look at M&A in the technology industry through the analysis of 2,470 global tech M&A transactions that occurred in the first half of 2015, representing a 25 percent sequential increase from H2 2014, and more than $416 billion in deal flow. The full report can be viewed here.

"Our H1 2015 Technology M&A Report reveals that there was a significant increase in technology M&A volumes and value since the beginning of 2015. Cross-border deals including deals across the 'Transatlantic Bridge' between the U.S. and Europe represented a significant part of that increase," said Peter Globokar, Managing Director, Mooreland Partners. "Our primary goal in publishing this research is to provide technology investors and entrepreneurs with the insights they need to understand how the exit market for their own business is evolving."

The Mooreland Partners H1 2015 Technology M&A Report reviewed statistics from over 2,470 global technology transactions and data compiled from Mooreland Partners, Capital IQ and 451 Group. Highlights from the report include: 

  • The U.S. remains the largest technology M&A market accounting for 50 percent of transactions. Of the nine corporate buyers that made at least one acquisition per month during the first half of 2015, seven have U.S. headquarters (Accenture, Google, J2 global, Microsoft, Motorsport.com, Trip Advisor and Twitter), one is Indian (Snapdeal), and one is Japanese (Dentsu).
  • Europe is the second most active market with a much higher incidence of cross-border transactions: Only 15 percent of all U.S. targets were acquired by a foreign buyer, but roughly 40 percent of European targets were acquired by foreign buyers, which were predominantly from the U.S.
  • Asia tech M&A activity increased dramatically compared to H2 2014: +75 percent in China, +40 percent in Japan, +115 percent in South Korea, and +125 percent in Hong Kong. However, acquisition targets are generally acquired by a domestic (same country) buyer in that region.
  • The number of transactions with a value in excess of $500M continued to grow: There were a total of 81 transactions in H1 2015, compared to 135 for all of 2014.
  • Most technology acquirers came from the U.S.: U.S.-based buyers made 45 percent of all acquisitions in H1 2015. However, there were 2,080 buyers from 56 countries who completed at least one tech acquisition.
  • M&A activity in H1 2015 remained fragmented: Only 264 buyers acquired more than one company during the period, accounting for over 30 percent of all deals. Sixty-eight buyers acquired three or more companies during H1 2015.
  • Transatlantic tech M&A activity remains vibrant and diverse: There were nearly 250 transatlantic transactions recorded in H1 2015 or four deals every three days, with 165 European targets acquired by U.S. buyers, and 82 U.S. targets acquired by European buyers.
  • The UK was the largest tech market for U.S. buyers with 66 transactions or 40 percent of the transatlantic total. France, Germany, Sweden, Ireland, and the Netherlands all saw between 10 and 15 acquisitions by U.S. buyers take place.
  • Eight transatlantic transactions in excess of $1Bn occurred in H1 2015, of which, half were made by European buyers in the U.S., notably, the acquisition of Freescale by NXP, and the acquisition of Igate by Cap Gemini.

Mooreland Partners predicts continued growth in transatlantic M&A activity in H2 2015. "The Transatlantic Bridge is set to grow in strength during the second half of this year, as a result of  a weaker Euro and ever growing cash piles held in Europe by U.S. corporations. Mooreland is at the center of transatlantic deal flow as the most active transatlantic technology M&A advisor, having completed nine transatlantic transactions in H1 2015 out of a total of 16 announced deals across the firm," added Globokar.

ABOUT MOORELAND PARTNERS 

Founded in 2002, Mooreland Partners is a leading independent investment bank providing M&A and private capital advisory services to the global technology industry, serving clients from its offices in Silicon Valley, Greenwich, CT., and London. Mooreland's team of almost 50 banking professionals delivers industry domain and transaction expertise across all major technology sectors including communications technology, mobile and digital media, enterprise software and services, as well as industrial technology and electronics. Follow us on Twitter or learn more at www.moorelandpartners.com.

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