United States

A potential slowdown ahead for information technology M&A

Q1 2016 Information Technology Industry Spotlight

INSIGHT ARTICLE  | 

Download report

The recent downturn and continued volatility in financial markets worldwide—particularly, the plunge in technology stocks—compounded by sluggish growth in the European Union and China’s muted prospects, has underscored drivers of change in the information technology (IT) industry that were already present. Players in the space were already looking toward growth strategies that emphasized sustainability in light of economic uncertainty; now, such attitudes will only become further confirmed.

Key highlights from 2015:

  • At 383 closed transactions, the fourth quarter of 2015 saw the lowest level of mergers and acquisitions (M&A) activity in some time.
  • The fourth quarter saw the third-highest total value of private equity capital invested in a single quarter since the start of 2009, a more-than-healthy $24.8 billion.
  • 2015 saw a relative drought in the flow of initial public offerings across the IT industry, with just 21, compared to 35 in 2014.

Contact our professionals

Contact us by phone 800.274.3978 or
submit your questions, comments or proposal requests.



Private Equity Subscriptions

Subscribe to Quarterly Industry Spotlights

Subscribe


Events / Webcasts

EVENT

Private equity and the software industry

  • December 14, 2016

IN-PERSON EVENT

RSM’s holiday and networking event

  • December 01, 2016

RECORDED WEBCAST

M&A: What to expect in 2017

  • November 16, 2016

RECORDED WEBCAST

Carried interest and GP estate planning

  • November 15, 2016