Morrison & Foerster partner Michael G. O’Bryan discussed mergers and acquisitions in the tech space in The Recorder article entitled, “Silicon Valley Dealmakers Mostly Upbeat About Tech M&A in 2019.”
Addressing Morrison & Foerster’s recent report on tech M&A trends, O’Bryan agreed that increased investments from non-tech companies and private equity firm have boosted dealmaking activity. While the number of global deals dropped slightly from 2017 to 2018, tech M&A has continued at a steady pace, reaching $574 billion in deal value globally last year, according to the Morrison & Foerster report. Citing the statistics from 451 Research’s M&A Knowledgebase, the MoFo report said private equity contributed a quarter of the $574 billion spent in tech M&A last year. Non-tech buyers, while still in the minority, are continuing to take an interest in the market in recent years—they spent more than $40 billion on tech M&A in each of the last three years, according to the report.
O’Bryan commented, “A lot of the drivers are still there. You’ve got the need, the desire to grow, the desire to make stronger business,” anticipating that the two trends are unlikely to slow down in 2019. “You got private equity firms that are interested in doing tech M&A, you got strategic companies that continue to be interested and need to do it, and you got money available in terms of the credit market,” he said.