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 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. 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.