In a year in which 10 mega-deals represented some 56% of the total value of all U.S. merger and acquisition (M&A) transactions in the tech sector, one deal involving a Seattle company ranked among the Top 10 largest of the year, according to an analysis of M&A activity by professional-services firm PwC.
San Francisco-based sales-management software company Salesforce acquired Seattle-based data-visualization company Tableau Software this past summer in an all-stock deal valued at $15.7 billion. It ranked as the fourth largest of the 10 tech mega-deals completed nationwide in 2019 ― which had a combined value of nearly $144 billion.
Overall tech-related M&A deal value nationally totaled $259.5 billion last year, up 8.1% from 2018, and the highest mark since 2016, the PwC report states The largest tech M&A transaction in 2019 was valued at $35 billion ― fintech company Fidelity National Information Services’ acquisition of payment-processor Worldpay.
“Mega deals were a significant driver of deal value for 2019, making up 56% of total deal value, compared to 46% in 2018,” the PwC report states. “Similar to the prior three years, there were 10 mega deals in 2019. However, the total value of mega deals increased by 32% compared to 2018, largely due to significant mega deals in the payments-processing space.
The PwC report indicates that 2020 will be marked by the same “host of worries” that plagued the investment market last year, including a slowing economy, elevated company valuations, trade tensions and political uncertainties ― including the upcoming U.S. elections, building conflict in the Middle East and Brexit.
“However, strategic acquirers will continue to be focused on their growth agenda and will likely maintain deal activity,” the PwC report adds. “Heading into 2020, we expect the deals environment to remain stable at current levels.”
Following is a ranking of the Top 10 tech M&A deals of 2019 based on transaction value, according to PwC.
#1 Fidelity National, Worldpay, $35.0B
#2 Fiserv Inc, First Data Corp, $21.7B
#3 Global Payments, Total System Services, $21.5B
#4 Salesforce, Tableau, $15.7B
#5 Ultimate Software Group Buyout, $11.9B
#6 Broadcom, Symantec, $10.7B
#7 Infineon Tech, Cypress Semiconductors, $9.4B
#8 NVIDIA Corp, Mellanox Tech, $6.8B
#9 Dassault Systèmes, Medidata Solutions Inc., $5.7B
#10 Tiger Midco, Tech Data Corp, $5.3B