Menu visibility control



Startup Surgery

Most Recent

Government & Policy

Here’s how UK tech reacted to the Supreme Court’s Brexit ruling


Wiltshire-based HealthTech firm Atlas Genetics closes $35m Series D


Leeds-based online sports network Pitchero lands £3.1m Series A

Press Releases

Starling Bank first of digital challengers to join Faster Payments as direct partner
No more electronic ‘loose change’: innovative fintech charity payment scheme launched today across 6,000 UK schools
Chimni calls for the UK proptech community to work more closely with the housebuilding industry

VIDEO: Tech M&A trends of 2016 with EY’s Richard Goold


We sat down with Richard Goold, ‎partner and head of tech law at EY Global, and discussed trends in tech mergers and acquisitions in 2016. Check out the video and read the article below, co-authored by Simon Pearson, EY UK and Ireland’s TMT corporate finance leader, to find out more.

Digital disruption drives tech M&A strength despite market uncertainty

Tech and non-tech companies being disrupted by innovative digital technologies turned to M&A in numbers that made Q3 2016 another blockbuster quarter for global technology M&A value.

With $155.5bn in disclosed value, Q3’s deal activity is now the third-highest aggregate value quarter on record. Technology deal-making is setting records because all buyers are motivated in the current environment. Incumbent tech companies seek deals to accelerate mobile- and cloud-driven transformations; non-tech companies seek strategic technologies; and private equity firms seek opportunity in hidden gems overlooked by many investors.

2016: A year in UK tech

Digital transformation drove tech and non-tech companies alike to acquire strategic technologies and divest non-strategic assets in the third quarter. Abundant deals of both types helped propel this last quarter to blockbuster values for global technology M&A, even as volume sagged. Tighter venture capital markets and an all-but-closed IPO window also contributed, as did companies seeking global growth.

Among the many factors shaping tech M&A in 2016:

  1. Whether induced by cloud computing, smart mobility, IoT or big data analytics, tech and non-tech companies continued pursuing transformational deals – often to build broader end-to-end solutions in response to customer demand (the theme we call stack to solution).
  1. Hidden gems. Ten divestitures rose above $1bn, as tech companies also pursued transformation by sharpening their core focus.
  1. The value of cybersecurity targets leaped in aggregate deal value; deals targeting IoT tripled, and advertising and marketing quadrupled.
  1. Deals targeting technologies that contribute to the reinvention and rapid evolution of digital customer experiences were prevalent, from customer support technologies to warehouse automation that helps satisfy customers’ growing demand for faster delivery.
  1. Growth-seeking geographic expansion sparked a peak in cross-border deal-making targeting US companies and record-breaking overseas M&A overall.
  1. Artificial intelligence (AI) deals were notable as a strategic technology target of many incumbent technology companies.

Rather than allowing geopolitical uncertainty and equity market volatility to slow deal-making, global technology M&A buyers appear to be ‘rolling with the punches’ in 2016. Technology is in such a state of rapid evolution, and tech and most other industries are so deep into disruptive digital technology transformations, that buyers know they can’t wait for markets to smooth themselves out. Instead, tech deal-makers – whether tech incumbents, non-tech buyers or PE – seem to be watching for the opportunities that market volatility sometimes creates, and are ready to make deals when it does.

View a full copy of the EY Global technology M&A report – July-September 2016.

Enter your e-mail address to receive updates straight to your inbox

* indicates required
Send me news on...

Editor's picks

Supreme Court

Here’s how UK tech reacted to the Supreme Court’s Brexit ruling
posted 5 hours ago


Wiltshire-based HealthTech firm Atlas Genetics closes $35m Series D
posted 6 hours ago


Leeds-based online sports network Pitchero lands £3.1m Series A
posted on January 23, 2017

PM Theresa May

UK tech community reacts to Theresa May’s Industrial Strategy proposals
posted on January 23, 2017

Theresa May

PM Theresa May to reveal Industrial Strategy Challenge Fund to support UK tech
posted on January 23, 2017

Tech for good

Here’s how tech for good startups can maximise their chances of getting funded
posted on January 23, 2017