There’s been an evolution taking place across businesses of all types, regardless of industry. Companies far removed from the software bubble of Silicon Valley — involved in metal fabrication, distribution, warehousing, you name it — are becoming software and data companies in their own right, sometimes with larger programming workforces than software providers. Information from every corner of enterprises is generated, processed, shared and analyzed, requiring on-premises and cloud-based infrastructures, along with the people needed to make it happen.
It perhaps should come as no surprise that many of the larger non-tech companies are buying tech companies to expand their technology prowess. It is interesting to see, however, that non-tech companies are taking the lead in technology-driven merger and acquisition activity as of late. High on their list of interests is building repertoire with the Internet of Things, along with cloud, big data and mobile.
These things, as a matter of fact, drove record M&A deal levels in the most recent quarter, a new analysis shows. Both tech and non-tech companies turned to M&A in numbers that made the third quarter of 2016 (July through September) a “blockbuster” quarter for global technology M&A value, according to EY’s latest quarterly Global Technology M&A report.
EY estimates that with $155.5 billion in disclosed value, the most recent quarter “is now the third-highest aggregate value quarter on record” for M&A. This marks an increase of 22 percent from the second quarter of 2016 and 138 percent year-over-year. At $349.4 billion, year-to-date aggregate value is 30 percent higher than what was the all-time record pace set by this time a year ago.
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