Technology Deal Activity Rebounds to 2012 Levels in Q3: PwC
Average deal value increased to $440 million, up from $253 million in the first quarter and $433 million in the second quarter of 2013.Technology deals accelerated in the third quarter, returning to 2012 levels after a dismally slow start to the year, with deal volume and value doubling that of the previous quarter, according to PricewaterhouseCooper's U.S. Q3 technology deals insights report. Average deal value increased to $440 million, up from $253 million in the first quarter and $433 million in the second quarter of 2013. Deal value during the third quarter totaled $27.7 billion, doubling that of the second quarter, with a total of eight transactions in excess of $1 billion closed. Private equity activity is on the rise and is expected to continue at higher levels through the remainder of the year. The report found private equity funds directly acquired a total of five companies in the third quarter and backed an additional 12 companies with acquisitions through wholly owned portfolio companies or through divestiture of an existing portfolio business. Software deal volume tripled that of the second quarter and climbed to levels equal to those of 2011 and the first quarter of 2012, with 24 transactions closed. Deal value increased 716 percent over the low value of deals in the second quarter, but was down 12 percent from a year ago.
Hardware volume increased 25 percent, while value increased 77 percent to $5.0 billion due to a series of transactions in excess of $500 million closed during the quarter, the report noted.