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Global technology M&A update - 1Q11 highlights - Smart mobility technologies drive deals - EY - Global

Global technology M&A updateSmart mobility technologies drive deals

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“As mobile devices continue to increase their role in the everyday activities of consumers and business users, M&A activity will reflect companies' recognition that their competitiveness depends upon their role in the smart mobile ecosystem.”

  Global Transaction Advisory Services Technology Industry Leader, Ernst & Young

The need for mobile devices spurs deal activity

Today's workforce is increasingly relying on their mobile devices for work and personal use, and many of the global technology M&A transactions seen in the first quarter of 2011 were designed to further develop the smart mobile ecosystem in which consumers and information workers now live.

Smart mobility technologies were at the top of the list of deal-driving trends in 1Q 2011 — we counted around 50 such deals — including many involving mobile video technologies.

Highlights of global technology deals related to the development of smart mobile ecosystems in 1Q 2011 included:

  • The quarter’s top 10 deals by dollar value included three in the semiconductor sector that brought together makers of communications chips for mobile phone technologies (e.g., LTE/4G and 3G chips) and chip makers that produce devices for Wi-Fi, WiMax, Bluetooth, GPS and other wireless communications technologies.
  • Mobile video-related deals were done across multiple sectors; several involved technologies that optimize mobile video transmission through compression or adaptive bit rate approaches. Others involved video content management and distribution technologies.
  • A trend in which applications are influencing mobile device choice for businesses and consumers was seen at work in 1Q 2011 technology M&A. There were several deals in the communications equipment sector in which mobile device makers purchased companies to enhance their delivery and development of mobile applications, services and content.
  • Illustrating the continued convergence of social networking and mobile technologies, a major social networking company made three mobile-related transactions in 1Q 2011: one for a company that provides "hyperlocal" mobile advertising technology, another for a mobile application developer and a third for mobile group messaging technology.
  • Mobile payment and processing technologies drove several deals this quarter, including acquisitions made in the IT services and software sectors. This reflects the increasing use of mobile devices to conduct day-to-day transactions.

Technology M&A deals contribute to the development of smart mobile ecosystems

“As mobile devices continue to increase their role in the everyday activities of consumers and business users, M&A activity will reflect companies' recognition that their competitiveness depends upon their role in the smart mobile ecosystem,” says Joe Steger, Global Technology Transaction Advisory Services Leader. “This will require focused attention on mobile application development, content generation and security as well as vertical integration knowledge to successfully integrate content and services within these emerging mobile device ecosystems.”

Our Global technology M&A update, January–March 2011 is a comprehensive report on the industry’s transaction activity in the quarter. It provides in-depth analysis of the quarter’s statistical results and deeper dives into the above trends.  

Executive bytes is a related and ongoing series where we take a closer look at what’s happening in specific segments of the technology industry.

Global technology M&A update

The first quarter started strong for global technology M&A. As technology innovations steer society toward a “smart world,” we anticipate a good year. Learn more about today’s trends.




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