Nearly 2,500 global compa nies were acquired in the first half of 2015, marking a 25% sequential increase in global tech M&A deal activity from 2014 and a $416bn in deal flow, says a researcher.
Mooreland Partners also predicts continued growth in transatlantic M&A activity in H2 2015. "The Transatlantic Bridge" is set to grow in strength during the second half of this year, as a result of a weaker Euro and ever growing cash piles held in Europe by US corporations, it says.
Mooreland Partners' H1 2015 Global Technology M&A Report shows a significant increase in technology M&A volumes and value since the beginning of 2015. Cross-border deals including deals across the 'Transatlantic Bridge' between the US and Europe represented a significant part of that increase," said Peter Globokar, Managing Director, Mooreland Partners.
The US remains the largest technology M&A market accounting for 50% of transactions. Europe is the second most active market with a much higher incidence of cross-border transactions: Only 15% of all US targets were acquired by a foreign buyer, but roughly 40% of European targets were acquired by foreign buyers, which were predominantly from the US.
Transatlantic tech M&A activity remains vibrant and diverse, it says: There were nearly 250 transatlantic transactions recorded in H1 2015 or four deals every three days, with 165 European targets acquired by US buyers, and 82 US targets acquired by European buyers.
The UK was the largest tech market for US buyers with 66 transactions or 40% of the transatlantic total. France, Germany, Sweden, Ireland, and the Netherlands all saw between 10 and 15 acquisitions by US buyers take place. Eight transatlantic transactions in excess of $1Bn occurred in H1 2015, of which half were made by European buyers in the US, notably, the acquisition of Freescale by NXP, and the acquisition of Igate by Cap Gemini.