Private Technology Companies Leading M&A with 2,277 Deals Completed in 2012

According to research and analytic's firm CB Insights, private technology firms announced 2,277 M&A deals globally in 2012. In deals with disclosed valuations, $46.8B was paid for private technology companies. 30% of deals account for 80% of that value. Eight private companies purchased for more than $1B in 2012 with 6 being US-based. The year noted 190 M&A transactions per month on average for technology companies.

In summary, the following technology M&A trends were reported in 2012:

• 76% of technology companies acquired in 2012 had not raised institutional investment prior to acquisition.
• More than 50% of M&A deals are less than $50M and more than 80% of the acquisitions are less than $200M.
• (Only) Eight private technology companies acquired for $1B+
• California noted the most private technology companies acquired in 2012, followed by New York (#2) and Texas (#3).
• Google and Facebook were the most active acquirers announcing 12 acquisitions.
• 94% of acquisitions were made by strategic buyers. PE firms and financial sponsors comprised a small 6% of deal volume.
• The UK led international markets with the most private technology company acquisitions in 2012 followed by Canada (#2) and India (#3).
• On average, companies raised $25.4M and were acquired for an average of $172.0M.
• Medians: companies raised $16.6M and were acquired for $73.5M (medians are a better measure).
• eCommerce/mCommerce announced the highest level of acquisition activity followed by ad related businesses. Fifteen different industries saw more than 30 acquisitions showing the diversity of technology sub-areas seeing activity.

Overall, we expect the technology M&A market to improve in 2013. Especially in the U.S. where its economy is in recovery mode.