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Technology & Services – Mergers & Acquisitions (M&A) Q1 Update 2022

Technology & Services – Mergers & Acquisitions (M&A) Q1 Update 2022

Anand Kalra, Principal, Zinnov; Shrey Sood, Engagement Manager, Zinnov; Prakash Jain, Project Lead, Zinnov
29 Apr, 2022
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Following a record-breaking year for Mergers & Acquisitions (M&A), 2022 has had a relatively slow start. While the momentum in deal activity continued in January and February, the sky rocketing inflation and the Russia-Ukraine war have had a negative impact on the M&A market in March 2022. Also, the market trajectory through the quarter was negative, with month-on-month declines from January through to March.

Q1-2022 was the 7th consecutive quarter with over USD 1 Tn deal activity across sectors. While SPAC activity levels were down by ~87% vs Q1-2021, Private Equity buyouts were up by 18% to reach a record USD 291 Bn, which is the strongest YTD activity for PE buyouts ever.

The technology sector continued to dominate the M&A market contributing ~26% to the global M&A value in Q1-2022, which was up from the ~20% contribution seen in Q1-2021. While the year started well for the technology sector, increased geopolitical tensions and the possibility of multiple rate hikes led to subdued M&A activity in the months of February and March. While public market valuations saw a mild correction in Q1-2022, they still remain at historically high levels.

Read our
2023 Technology Trends Report

While the deal activity was impacted in March, fundamental drivers of dealmaking remain robust. The technology sector continues to be a strong favorite for PE firms, while strategics continue to acquire the right assets to address portfolio gaps.

In this quarterly update, Zinnov’s M&A Advisory team explores key data points and M&A trends across the Technology & Services industry.

The report sheds light on:

  • M&A activity and trends; marquee software and services transactions in Q1-2022
  • Valuation trends in the technology services space since 2019
  • Key M&A themes and drivers
  • Near-term risks including increasing interest rates and geopolitical uncertainties
  • Impact of Russia-Ukraine war on the M&A market
  • Zinnov Insights on Private Equity and M&A; Technology Trends
  • IT Services Transaction Activity
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  • Technology Services Mergers Acquisitions Q1 2022 Update1
  • Technology Services Mergers Acquisitions Q1 2022 Update2
  • Technology Services Mergers Acquisitions Q1 2022 Update3
  • Technology Services Mergers Acquisitions Q1 2022 Update4
VIEW REPORT
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  • Technology Services Mergers Acquisitions Q1 2022 Update1
  • Technology Services Mergers Acquisitions Q1 2022 Update2
  • Technology Services Mergers Acquisitions Q1 2022 Update3
  • Technology Services Mergers Acquisitions Q1 2022 Update4
Download the Report