5 / 11
4
Q3 2015
2015 M&A Summary Transaction Analysis
Transaction
Activity
Summary
Summary of Transaction Activity
In the last twelve months, M&A activity increased by 11.6% to 3,819 transactions from 3,422 in the 3rd
quarter of 2014, an increase of 397 transactions year-over-year. The three most active sectors from Q3 of
2014 to Q3 of 2015 were Application Software, Internet Content and Commerce, and IT Services and
Distribution, which represented 56% of all transactions. After a slight decrease in 2014’s Q4, transaction
activity increased in the first three quarters of 2015. Heading into the last quarter of 2015, the sectors with the
greatest increase in activity were Mobility, Internet Content and Commerce, Security, and Semiconductors
which increasing by 29.0%, 29.0%, 17.0%, and 17.0%, respectively in Q3 2015 over Q3 2014.
Transaction Activity by Quarter
Financial Buyer Summary
In the last twelve months, The McLean Group tracked
11,819 technology-related transactions by Private
Equity (PE) and Venture Capital (VC) firms, which was
a 3.7% increase over transaction activity in the
previous twelve months. The majority of transactions
and capital invested came from VC firms. In Q3 of
2015, VC firms made 1,882 transactions (87.2%), while
PE firms made 277 transactions (12.8%). Additionally,
total invested capital increased by 8.9%, from $136.3
billion to $148.6 billion, with VC firms representing
59.% of total capital. As expected, VC firms invested
more frequently in technology firms than their PE
counterparts.
Transaction Activity by Sub-Sector
Financial Buyer Activity
As of: 09/30/2015
Sources: 451 Research and PitchBook
22%
17%
15%
9%
6%
4%
5%
4%
3%
4%
11%
LTM Q3 2014
22%
19%
15%
10%
5%
4%
5%
4%
3%
4%
9%
LTM Q3 2015
LTM Q3 2014 LTM Q3 2015 %Change
Application Software
771
858
11%
Internet Content and Commerce
571
738
29%
IT Services & Distribution
510
558
9%
Mobility
300
387
29%
Information Management
202
200
-1%
Hosted Services
131
143
9%
Systems
190
173
-9%
Security
124
145
17%
Communication Services
113
128
13%
Semiconductors
122
143
17%
Other
388
346
-11%
Total
3,422
3,819
11.6%