June 15, 2016
By Paul Harman
$28.1bn Proposed acquisition of LinkedIn
Microsoft’s proposed $28.1bn (equity value) acquisition of LinkedIn, announced on June 13, is the largest ever by the software company and the fourth largest M&A deal announced this YTD.
It is one of only 10 M&A deals announced in the Technology sector valued at $20bn or more (4 are spin-offs).
$267.6bn Technology leads global M&A
After nearly 7 years of consecutive increases, Technology leads global M&A in 2016 for only the second time on record with $267.6bn (4,158 deals) announced so far this year, up 7% on 2015 YTD ($250.6bn, 4,496 deals) and the second highest YTD for the sector on record behind 2000 ($289.3bn). Prior to Microsoft / LinkedIn, volume was down 4% y-o-y.
Technology was the leading M&A sector in 2015 (full year) for the first time, with volume of $714.1bn. The pending $66bn acquisition of EMC by Dell, announced in October 2015, is the largest deal announced on record in the sector.
The other targeted sectors in the top 3 so far this year – Real Estate ($180.6bn) and Healthcare ($156.1bn) – are down 14% and 25% respectively year-on-year.
US leading acquirer in Technology M&A
US leads global Technology M&A in 2016 with $125.8bn, its second highest YTD on record behind 2000 YTD ($198.7bn). Its share of global volume (47%) is lower, however, as deals announced by Chinese acquirors account for 32% ($85.5bn), the highest YTD volume and share on record. China has ranked second for Technology acquisitions since 2011.
Goldman Sachs – Tops Technology M&A Ranking
Goldman Sachs leads the global Technology M&A ranking 2016 YTD with $72.0bn, followed by Morgan Stanley and JPMorgan, with $53.6bn and $47.8bn, respectively. Morgan Stanley moved into second place as advisor to Microsoft while Qatalyst Partners and Allen & Co – advising LinkedIn – moved to fourth and fifth ranking, respectively.