Technology deals slip in the third quarter, according to a new report

A new PwC report is out with a look at third quarter 2019 deal flow.

Technology deal volume fell by 46% when compared to the second quarter. Because the first half of the year was exceptionally strong total volume of technology M&A is still up 37% year over year. Mega deals have driven that uptick in volume. In 2019, we saw nine deals for $138 billion compared to 2018. Last year, we had just seven deals totaling $63 billion.

PwC Report Discusses Foreign Investment

Foreign buyers have been very active. The report found that “Foreign acquirers continued to be active in the US market this quarter, with 53 transactions totaling $7.2 billion, compared to 72 transactions with a total of $18.5 billion in Q2. Overall cross-border deal activity through the first three quarters of 2019 is higher compared to 2018, with inbound deal value higher by 8% and outbound deal value higher by 33%.”

Non-tech corporate acquirers were absent again this quarter. Technology companies were the buyer in an amazing 94% of deals in the third quarter.

Marc Suidan, US Technology, Media, & Telecommunications Deals Leader for PWC, commented on technology deal flow.

“While deal activity slowed in the quarter, we are cautiously optimistic that the technology deal environment will recover going into next year, driven by the continued strength of tech acquirers and a significant amount of undeployed capital from private equity investors,” he said.

You can access the report here.

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