Technology Mergers on Upswing in Q1 2014

2014 is off to a strong start for technology M&A announcements. We noted a number of new transactions announced in January and early February 2014. According to several M&A research reports and surveys, including KPMG's 2014 M&A Survey, we expect a solid year for technology M&A announcements.  These efforts will reflect a better global economy and market conditions than were available in previous years. In addition, the top reasons as to why we will see more M&A transactions in 2014 include:

• Large amounts of cash sitting on corporate balance sheets and in PE funds
• Opportunities in emerging markets
• Availability of credit and favorable terms
• Improved customer (and executive) confidence
• Improving equity markets
• Improved employment numbers
• Recovery of certain industry sectors, including financial services

A well executed integration plan, reasonable deal price/value, effective due diligence and positive economic conditions are all important factors in M&A success.

We see an uptick in dealflow for the first half of Q1 2014 within software, IT services, cloud services, digital media and financial technology and expect it to increase further.

Due to this expected uptick for M&A in 2014, Generation Equity Advisors plans to continue its growth and efforts to lead and advise on technology M&A transactions by adding additional talent and expertise to its experienced staff.  In addition, it plans to form strategic partnerships with companies that can enhance its M&A reach to the global markets.

For further information, please contact its M&A team at mergers@generationequityadvisors.com