Global technology transactions scorecard, 1Q11

Deals announced	1Q10	1Q 2Q 3Q 4Q 1Q	1Q11	YOY % change	Sequential % change
Corporate
Number of deals announced	572		721	26%	12%
Number of deals with disclosed values	165		251	52%	8%
Total value of deals with disclosed value ($m)	$10,193		$25,154	147%	1%
Average value of deals with disclosed values ($m)	$62		$100	61%	-7%
PE
Number of deals announced	56		73	30%	20%
Number of deals with disclosed values	14		18	29%	20%
Total value of deals with disclosed value ($m)	$1,907		$1,898	0%   -	-62%
Average value of deals with disclosed values ($m)	$136		$105	-23%	-68%
Corporate and PE
Number of deals announced	628		794	26%	13%
Number of deals with disclosed values	179		269	50%	9%
Total value of deals with disclosed value ($m)	$12,100		$27,052	124%	-10%
Average value of deals with disclosed values ($m)	$68		$101	49%	-17%
Source: Ernst & Young analysis of FactSet Mergerstat data, last accessed 8 April 2011.

"With so many disruptive innovation trends happening right now — from smart mobility to cloud computing and social networking — strategic and financial buyers should have many M&A opportunities."Joe Steger, Global Technology Transactions Advisory Services Leader

With a smaller sequential dip in deal value metrics than we saw in last year's first quarter and significant YOY growth in deal volume and values, the first quarter of 2011 started the year off strong for global technology M&A.

"Smart world" sparks technology M&A

Driving 1Q11 deal-making were technology innovations that are steering society toward a "smart world," including communications, computing and storage devices for smart mobility, cloud computing and social networking, as well as the content, operating software and applications that breathe life into those devices.

Security-related deals also continued to be significant, as did cross-border deals.

Video technology deals increase

In addition, deals around internet and mobile video technologies — seeds we've seen germinating in past quarters — surfaced in 1Q11 across multiple sectors.

Non-technology buyers

All these technologies tend to blur technology industry segments together and blend the technology industry itself with other industries: non-technology buyers purchased 15% of the total value of disclosed-value transactions in 1Q11, the same percentage as in 2010 but nearly double the 8% of value they purchased in 2009.

Robust growth in transaction "scorecard"

The first-quarter global technology transactions scorecard (at right) tells a story of significant growth YOY, but deal values decline sequentially. However, even the sequential "dip" in 1Q11 from 4Q10 of 10% in total value and 17% in average value per deal (for combined corporate and PE) is a major improvement over the falloff in 1Q10 from 4Q09. In 1Q10, total value fell 66% and average value fell 56%. This year's dip in value is in line with the historical trend we've seen in fourth-to-first quarter sequences, whereas last year's decline was larger.

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