According to a report recently published by Ernst &Young
(EY) entitled "Global technology M&A report: 1Q16 final
look – Digital disruption, slow organic growth drive tech
deals", mergers & acquisitions in the global technology
industry remained strong in Q1 2016, despite macroeconomic
uncertainty particularly in the equity and debt markets.
Interestingly, the deal volume in Q1 2016 (at 1002 deals) was up
8% sequentially from Q4 2015 and 2% year-over-year (YOY);
meanwhile, the Q1 2016 aggregate value of disclosed-value deals (at
USD$66.7 billion) was down 14% YOY and 65% sequentially. There were
also 14 big-ticket deals that were over USD$1 billion in value,
which included 3 deals at over USD$5 billion. Moreover, Q1 2016 saw
the second-highest deal volume for private equity buyers (at 92
A few highlights of the report:
Analytics technologies (such as big data, up 72% YOY) led the
growth of 7 of 10 disruptive deal-driving trends: Internet of
things (IoT), cybersecurity, health care information technology
(HIT), cloud/SaaS, connected cars , and advertising and marketing
all experienced an increase in deal volume
Chinese buyers dominated Q1 2016 cross-border deal flow: US
tech companies were once again the major targets in 2016
cross-border deal-making. China, the biggest buyer by deal value,
acquired 7 US tech companies at an aggregate value of USD$7
billion, which included one USD$6 billion deal that was the largest
deal by value of Q1 2016
Non-tech-buyer deal volume rose 26% YOY to 147 deals: deals
which involved a non-tech company acquiring a tech company made up
25% of Q1 2016 total deal value, which was well above 2015's
quarterly average. This trend further drives up cross-industry
The report concluded that tech deals in Q1 2016 were
driven mainly by accelerating digital disruption and slowing
organic growth in various technology markets and geographies.
Despite the fact that there were falling values for global
technology M&A in Q1 2016 due to a record-setting 2015, it was
nevertheless the ninth-highest-value quarter ever. Going forward,
tech dealmakers will continue to seek disruptive technologies such
as cloud, mobile, social and big data analytics technologies to
reshape and transform the global technology industry.
The author wishes to acknowledge the contribution of Coco
Chen, Summer Student, in preparing this blog post.
About Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global law firm. We provide the
world's preeminent corporations and financial institutions with
a full business law service. We have 3800 lawyers and other legal
staff based in more than 50 cities across Europe, the United
States, Canada, Latin America, Asia, Australia, Africa, the Middle
East and Central Asia.
Recognized for our industry focus, we are strong across all the
key industry sectors: financial institutions; energy;
infrastructure, mining and commodities; transport; technology and
innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global
business principles of quality, unity and integrity. We aim to
provide the highest possible standard of legal service in each of
our offices and to maintain that level of quality at every point of
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).