[ad_1]
Tech M&A in 2022 was a story of two halves. The 12 months began off with a bang, with mega-deals similar to Microsoft’s pending $69 billion acquisition of Activision Blizzard, Elon Musk’s $44 billion acquisition of Twitter and Broadcom’s pending $61 billion acquisition of VMware inked in fast succession. Nonetheless, deal exercise fizzled within the second half of 2022, as excessive inflation, aggressive anti-inflation financial insurance policies, geopolitical instability, assertive antitrust regulators and tightening financing markets depressed goal valuations, lowered strategic acquirer confidence and sidelined personal fairness sponsor patrons. Deal volumes dropped from $531.13 billion[1] throughout the first half of 2022 to $189.17 billion within the second half, leading to complete 2022 quantity of $720.3 billion, a 36% lower from 2021’s report excessive of $1.1 trillion.[2] Regardless of the downtrend, international tech M&A exercise in 2022 remained robust relative to pre-pandemic ranges and accounted for a report 20% of all international M&A exercise. As was the case in 2021, software program offers remained the strongest performer throughout the tech sector, representing roughly 90% of tech M&A offers.
The numbers present solely a partial image of the traits we noticed in 2022 and the place tech M&A exercise is headed in 2023. Let’s take a better look, with an eye fixed towards what we are able to anticipate to see within the coming 12 months.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
