Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    PwC Tracks Top IT Industry Acquisition Targets for 2016/2017

    By
    Don Reisinger
    -
    January 27, 2017
    Share
    Facebook
    Twitter
    Linkedin

      PrevNext

      1PwC Tracks Top IT Industry Acquisition Targets for 2016/2017

      PwC Tracks Top IT Industry Acquisition Targets for 2016/2017

      PwC’s Deal Insights data for 2016 and 2017 indicates that software and IT services sectors will remain attractive targets for corporate acquisitions this year.

      22016 Was a Banner Year for Tech M&A

      2016 Was a Banner Year for Tech M&A

      Last year was an impressive year for technology mergers and acquisitions, PwC data shows. The company counted 1,613 acquisitions, totaling $323.5 billion in cumulative transaction value. While the number of acquisitions was down by 16 percent compared to 2015, the total value was up 3 percent year over year, thanks to a larger number of big deals.

      3There Were 61 Deals That Exceeded $1 Billion

      There Were 61 Deals That Exceeded $1 Billion

      According to PwC, 2016 saw an “explosion of multi-billion dollar transactions.” The year saw 61 deals that exceeded $1 billion in value, including 11 that were greater than $5 billion. The number of deals worth $1 billion or more nearly doubled year over year, amounting to $261 billion.

      4‘Non-Digital Buyers’ Snap Up IT Companies

      'Non-Digital Buyers' Snap Up IT Companies

      Non-digital buyers, or those that might not have a major online technology presence, were very active last year. In the fourth quarter alone, they bought 167 technology companies. According to PwC, “non-digital buyers” are acquiring technology companies to expedite their “transition into more digital business models.” Those non-digital buyers are most likely to be retail, automotive and healthcare companies.

      5Software Is in High Demand

      Software Is in High Demand

      Software proved to be the most sought-after segment last year, with a total of 659 deals. Its deal volume totaled $88.4 billion, topping all other technology industry segments in 2016.

      6IT Services Are Important

      IT Services Are Important

      The IT services segment came in second place in acquisition in 2016, accounting for 512 deals on the year. However, its total deal volume was $61.9 billion, suggesting companies paid less for IT services firms compared to others in different segments.

      7Big Investments in Semiconductors

      Big Investments in Semiconductors

      Semiconductor companies weren’t necessarily in high demand, but when they did sell in 2017, they fetched high prices. In fact, fewer than 100 semiconductor companies were acquired last year, but their deal volume reached $78.3 billion, putting them in second place behind software for the most segment spending.

      8The U.S. Is Still the Epicenter

      The U.S. Is Still the Epicenter

      The United States is still the place to be for companies hoping to be acquired. During 2016, 1,398 of the more than 1,600 technology companies that were acquired were headquartered in the United States. Europe came in second place with 97 deals. Asia-Pacific tallied 59 deals and Africa/Middle East saw 12 acquisitions.

      9Acquisition Multiples Soar

      Acquisition Multiples Soar

      Multiples, or the metrics by which companies are acquired, were up in 2016. According to PwC, the Software segment’s revenue multiple led all others at 3.5x. It also was tops in earnings before interest, taxes, depreciation and amortization (EBITDA), where its multiple stands at 18.8x. Hardware companies fetch the smallest multiples with values based on revenue at 1.4x and EBITDA at 12.2x.

      10Software Acquisitions in 2017 Will Continue

      Software Acquisitions in 2017 Will Continue

      While PwC didn’t put an actual figure to it, the company says technology buyers will be eyeing software companies foremost in 2017. They suspect buyers will focus on software firms operating in the cloud and artificial intelligence.

      11Expect to See More Buyers in 2017

      Expect to See More Buyers in 2017

      Although multiples are rising and competition is already fierce for technology companies, PwC doesn’t see the acquisition trend slowing anytime soon. Quite the contrary: The consulting firm says more buyers—including private equity companies, non-digital buyers and others—will be looking for targets in the new year. But PwC doesn’t anticipate any big semiconductor acquisitions in 2017.

      PrevNext

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×