Technology has maintained its attraction among the makers of the agreement, performing strongly in the first half of 2022 even when M&A in other sectors had been contracted.
The latest data from Pitcher Partners and Mergermarket highlighted technology as the main sector, even when the enthusiasm shown for M&A in 2021 evaporated amid new uncertainty.
Overall the M&A results from the first round showed that 359 offers were completed until 30 June, a decrease of 29% in Australian transaction volume compared to the same time last year, while the total value of the offer rose 6% to $ 88.3 billion.
Technology transactions represent 30% of the agreement based on volume, consisting of 33% of the agreement in the middle market and contributes only below one-third of the middle market offer based on value.
Investors sharpen their focus on targets with rich intellectual property and digital solutions because business leaders extend efforts to accelerate their own digital transformation.
Digital transformation
Executive Director of Pitcher Partners James Beaumont said there was a strong international interest in Australian technology, highlighted by recent agreements including Fujitsu’s acquisition of ACT Oobe-Based Software Support Firm and $ 325 Million Purchases from IT Dialogue Services Companies by Singtel NCS Subsidiaries by Digital transformation.
Beaumont said he hoped that the early Australian scenes were developing and a mature medium market technology company to remain attractive to investors in the second half of 2022 in Digital transformation.
“Australia maintains its reputation as a paradise for innovation with a strong initial culture, but buyers look for technology companies that are not too promising and under shipping,” Beaumont said.
“They want the right IP and a market that cannot be easily eroded.”
Against the enthusiasm, Beaumont noted that there was still a level of death among the buyers and even for the strong technological sector, after several agreements praised from 2021 failed to meet expectations.
Last year’s technology transactions increased with an agreement of $ 39 billion for afterpay by the square (now blocks), with the two companies recording the value of the retreat since then.