1. Deals Analysis
February 16, 2021

US technology industry sees a rise of 5.15% in deal activity in January 2021

By Carmen

US technology industry saw a rise of 5.15% in overall deal activity during January 2021, when compared with the last 12-month average, led by Teledyne Technologies’ $8.36bn acquisition of FLIR Systems, according to GlobalData’s deals database.

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A total of 653 deals worth $55.14bn were announced in January 2021, compared with the 12-month average of 621 deals.

M&A was the leading category in the month in terms of volume with 299 deals, which accounted for 45.8% of all deals.

In second place was venture financing with 292 deals, followed by private equity with 62 transactions, respectively accounting for 44.7% and 9.5% of overall deal activity in the US technology industry during the month.

In terms of value of deals, M&A was the leading deal category in the US technology industry with total deals worth $44.33bn, while venture financing and private equity deals totalled $7bn and $3.8bn, respectively.

US technology industry deals in January 2021: Top deals

The top five technology industry deals accounted for 59.8% of the overall value during January 2021.

The combined value of the top five technology deals stood at $32.96bn, against the overall value of $55.14bn recorded for the month.

The top five technology industry deals of January 2021 tracked by GlobalData were:

1) Teledyne Technologies’ $8.36bn acquisition of FLIR Systems

2) The $7.3bn merger of Alight solutions and Foley Trasimene Acquisition

3) Peraton’s $7.1bn acquisition of Perspecta

4) The $5.7bn acquisition deal with Coherent by Lumentum Holdings

5) Cisco Systems’ acquisition of Acacia Communications for $4.5bn.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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