With 2014 noted for a series of record-setting and transformative deals, momentum is expected to carry over into 2015 as dealmakers continue to invest in cloud, mobile and security, and seek out emerging technologies such as Internet of Things (IoT), according to PwC’s US Technology Deals Insights 2014 Year in Review and 2015 Outlook report.
“2014 closed with technology deal activity not seen since the dot com era, thanks to a record number of billion dollar transactions and a resurgence of mid-market deals,” said Rob Fisher, PwC’s US technology deals leader. “As we consider the almost $350 billion (€312 billion) in cash and securities on hand at the top 25 technology companies, record levels of private equity funds waiting to be deployed and projected full pipelines from every angle of the market, 2015 promises to be another active and exciting year for technology M&A.”
According to Deal Insights, cumulative technology deal value for 2014 closed at $161.4 billion (€144 billion), a 62% increase over 2013, which had a total deal value of $99.8 billion (€89 billion). Average deal value grew to $583 million (€521 million), compared to $489 million (€437 million) in 2013.
Technology IPOs continued to remain a key market driver and reached their highest levels since the dot com era. Even excluding the single largest IPO, valued at nearly $22 billion (€19.6 billion), IPO value increased 40% and volume increased 18% over 2013. In total, there were 60 technology IPOs, an increase over the 51 posted in 2013, making 2014 the most active year since 2000.