Companies spent nearly US$ 300 billion on ‘disruptive innovation-related’ M&A deals in 2016, four times the $72 billion in 2012
6 March 2017
The M&A spend on disruptive innovation-related sectors (such as Fintech, AI and Robotics), reached US $291 billion for 2016, four times the total of $72 billion in 2012, increasing steadily year on year. Analysis from Deloitte aggregates global M&A deal activity from the following nine sectors: IoT, Fintech, Cleantech, Healthtech, Big Data, Robotics, Wearables, Artificial Intelligence and Digital.
Iain Macmillan, head of global M&A at Deloitte, commented:
“Unrelenting technological progress brings uncertainty of another kind to the global M&A markets, already dogged by political and economic changes. Artificial Intelligence (AI), Internet of Things (IoT), robotics and other disruptive innovation technologies are set to unleash a new competitive race.
“CEOs are now saddled with the twin objectives of responding to the disruptive innovation threat in their own arena while simultaneously harnessing these forces to create businesses of tomorrow. This reorientation should provide a significant boost to M&A and corporate venture investment activities, as well as unlocking new sources of revenue. The $300 billion spent last year to acquire these technologies should increase in 2017, although companies will be making relatively smaller, more strategic deals.”
Deloitte estimates global deal volumes across all sectors will reach 10,902 deals for the first quarter of 2017, compared to 11,087 in Q1 2016, a decrease of 1.6%.
Iain Macmillan concluded: “Despite uncertainty, global M&A deal activity is in fact holding up relatively well.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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Disruptive innovative related M&A activity, 2012 -2016
Disruptive innovation related M&A includes 1) VC Exits (corporates as acquirers); 2) Pre-venture M&A deals (self-funded startups M&A) and 3) Billion dollar M&A deals whose deal rationale is disruptive in nature. Disruptive innovation M&A data is sourced from the Pitchbook database, and includes both pending and completed deals. This information is part of the forthcoming ‘M&A Index’ tracking trends in global M&A deals.