Tech Mergers And Acquisitions To Peak In 2022: Gartner
Not surprisingly, COVID-19 shook up the tech industry, forcing many mergers and acquisitions within the field.
A new report from Gartner predicts that this trend is accelerating, with 2022 set to bring more global mergers and acquisitions within the tech industry than the highs seen in 2018.
“Market conditions for deal making will continue to improve as volatility stemming from COVID-19 subsides,” said Max Azaham, senior research director at Gartner.
“Tech CEOs pursuing acquisitions should anticipate increased competition for targets and take steps to gain advantages over other acquirers to earn seller acceptance.”
The Tech CEO: Acquisition Strategies During COVID-19 and Implications for Providers report explains that in 2020, “financial acquisitions of software providers” represented over half of all such acquisitions, ad that increasing interest should see this activity driven even higher in 2022.
The report warns that tech CEOs must brace themselves for “competitive landscapes where key competitors merge”, pointing out that service providers in particular need to be wary.
“Instead of making acquisitions or being acquired, tech CEOs will start to consider partnerships and ecosystems to level the playing field against larger companies resulting from consolidation in their markets,” Azaham said.