The number of mergers and acquisitions across data, marketing, media, software and tech-enabled services industries rose by 8% in 2015, the biggest increase seen since the pre-recession year of 2007. Deal values shot up 15% with $152 billion spread over 2,342 transactions, according to Jordan Edmiston Group (JEGI), an investment bank focused on these businesses.
Big deals in 2015 included Media General’s purchase of Meredith Corporation; Audi, BMW, and Daimler buying Nokia’s HERE; Verisk Analytics’ acquisition of Wood Mackenzie; and SS&C Technologies’ Advent Software deal. The software and tech-enabled services sector was the most active, consummating 1,441 deals totaling $76.3 billion.
Ready cash and rapid pace of change spurred the uptick in deals. The fast-paced evolution of cloud-based technologies and the resulting convergence of channels had enterprises playing catch-up via M&A, according to JEGI. Where the action is, the money follows, and JEGI reported an expansion in private equity investments in software and technology.
Twenty-nine deals done in 2015 exceeded $1 billion in value.
