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

-- Increased Deal Flow Boosts Technology M&A Volumes and Valuations --

ST. PAUL, Minn.--()--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.

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 a range of services that helps make the M&A deal process faster and more effective. Its industry-leading virtual data room, Merrill DataSite, ensures the right information is shared with the right people, leading to successful mergers and acquisitions. Merrill helps create and file initial public offering documents, as well as periodic financial disclosures required by the U.S. Securities & Exchange Commission and other global regulatory bodies. For more information, go to www.merrillcorp.com.

Contacts

Merrill Corporation
Kris Slethaug, 212-367-5928
kris.slethaug@merrillcorp.com
or
RooneyPartners LLC
Robert Cavosi, 646-638-9891
rcavosi@rooneyco.com

Release Summary

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

Contacts

Merrill Corporation
Kris Slethaug, 212-367-5928
kris.slethaug@merrillcorp.com
or
RooneyPartners LLC
Robert Cavosi, 646-638-9891
rcavosi@rooneyco.com