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Global tech M&As in Apr-Jun at $52-bn: E&Y

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Press Trust of India New York
Last Updated : Jan 21 2013 | 12:12 AM IST

The total value of global mergers and acquisitions (M&A) in the technology space touched $52 billion in the April-June period of 2011, nearly double the deal value during the first quarter, a report said.

According to Ernst & Young, the M&A value in the technology sector stood at $52.1 billion in the second quarter of this year globally, which is 92% higher than $27.1 billion seen in the preceding quarter.

The value of global M&As in the technology space at $52 billion, 69% higher than $30.8 billion witnessed in the the same period last year.

The surge was powered by innovation in areas such as cloud computing, smart mobility, Internet and mobile video, the smart grid and solar energy, the report noted.

Interestingly, top-10 deals accounted for 61% of all disclosed value.

The report said that this year would continue to be a strong year for technology M&A, but cautioned against geopolitical unrest, global debt issues among others.

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"After the first quarter M&A results, we saw the potential for a big year for technology M&A in 2011, but we were concerned over increasing divergence between buyers and sellers over valuation, geopolitical unrest, the continuing US debt ceiling and government spending debate, global debt issues and other unforeseeable possibilities.

"Yet all these hurdles were overcome to produce a very robust second quarter. The big question is whether deal-making will continue to overcome these macro obstacles or take a pause in the second half," Ernst & Young Global Technology Transaction Advisory Services Leader Joe Steger said.

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First Published: Sep 05 2011 | 8:48 PM IST

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