Private Equity Deals Driving Technology Sector M&A Activity, According to a Merrill Corporation Survey

Oct 13, 2017

Dealmakers in the technology sector believe that the influx of capital from private equity has contributed to recent M&A activity, boosting volumes and valuations, according to a recent survey conducted by Merrill Corporation, a leading provider of virtual data rooms, and services for regulatory disclosure and regulated communications. This survey was conducted as part of the company’s ongoing webinar series on M&A across various segments, and included industry experts plus over 650 dealmakers.

“The survey results reflect a broader marketplace view, and trend, that the pace of innovation and disruption will continue to be a powerful driver behind M & A activity in the technology sector, with private equity continuing to have a very active, and increasingly impactful presence”

Key findings among the participants include:

  • A strong majority of respondents (74 percent) believe that private equity’s increased technology M&A presence has increased both deal volumes and valuations.
  • Nearly half of the survey respondents (45 percent) indicated that excess liquidity in global markets will have the greatest impact on technology sector M&A activity over the next year; the next biggest influences would be the repatriation of offshore earnings (20 percent), and the potential for tax reform (19 percent).
  • More than half of the respondents (55 percent) indicated that they expect a modest increase in technology sector M&A activity over the next two quarters.
  • Predictions of the privatization of public technology companies were mixed: 37 percent of survey participants indicated that they expect the number of publicly traded technology companies being taken private to increase slightly in 2018; 32 percent believe that take-private activity in the technology sector in 2018 will remain on par with 2017 levels.

“The survey results reflect a broader marketplace view, and trend, that the pace of innovation and disruption will continue to be a powerful driver behind M & A activity in the technology sector, with private equity continuing to have a very active, and increasingly impactful presence,” said Rusty Wiley, Merrill’s President and CEO. “It seems clear from the survey results, and the trends that we’ve observed at Merrill, that M&A activity in the technology sector will continue to be fairly robust.”

For a replay of the Merrill webinar, go to www.merrillcorp.com/en/blog/executing-effective-ma-technology-webinar.

About Merrill Corporation

Merrill Corporation provides technology-enabled platforms for secure content sharing, regulated communications and disclosure services. Clients trust Merrill’s innovative applications and deep subject expertise to successfully navigate the secure sharing of their most sensitive content, perfect and distribute critical financial and regulatory disclosures, and create customized communications across stakeholders. With more than 3,000 people in 34 locations worldwide, clients turn to Merrill when their need to manage complex content intersects with the need to collaborate securely around the globe.

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