Tech cross-border M&A on record pace in First Half of 2021 according to data from Velocity Global and PitchBook
DENVER
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August 24, 2021 07:02 AM Mountain Daylight Time
- Deal multiples return to 2019 levels
- Cross-border software deals skyrocket
- Cross-Border M&A Monitor: Tech Sector released today
Cross-border tech merger and acquisition deals accelerated in the first half of 2021, on a record pace in transactional volume. That data from PitchBook was released today in the Cross-Border M&A Monitor: Tech Sector published by Velocity Global, the leading provider of global employment solutions.
The late surge of activity in 2020 continued through the first half of this year with approximately 1,000 cross-border tech deals closed, for an aggregate of $139.9 billion.
“The deal multiple increased in the first half of this year and returned to 2019 levels, which indicates investor confidence in global economic recovery,” said Rob Wellner, Velocity Global chief revenue officer. “Increased multiples drive an even greater need for pre-deal preparation and successful integration after close.”
Software value already tops 2020
The value of cross-border M&A deals for Software companies in the first six months of 2021 already topped full-year values for 2020 at over $100 billion.
“The pandemic accelerated digital transformations, funneling budgets to build or buy the necessary tools,” added Wellner. “The acquirers are tech and non-tech alike, with tech adding to their stack, and non-tech adding to their in-house capabilities.”
Pandemic Operations Drive Cross-Border M&A Interest
As evidenced by the increase in median deal size in cross-border tech M&A, dealmakers paid up with confidence. Cross-border acquisitions require businesses to navigate a distributed workforce, and the global pandemic prompted companies of all sizes to invest in the proper resources.
“Integration will always have complexities like country-specific labor laws and regulations, but companies are more willing than ever to invest in cross-border diversification and leverage tools to manage a distributed workforce,” said Wellner. “Work from home is really no different than work from another country as it relates to workflow and employee engagement.”
Download the Cross-Border M&A Monitor: Tech Sector here.
About Velocity Global
Velocity Global accelerates the future of work beyond borders. Its global work platform simplifies the employer and employee experience through proprietary cloud-based workforce management technology, personalized expertise, and unmatched scale. As the largest global Employer of Record (also known as International PEO) in 185 countries and all 50 United States, more than 1,000 brands rely on Velocity Global to build global teams without the cost or complexity of setting up foreign legal entities or state registrations. The company offers additional services including Independent Contractor Compliance to assess a workforce, and Agent of Record (AoR) to streamline payments to contractors. Velocity Global was named a “Leader” in Global Employer of Record services by prominent analyst firm NelsonHall. Founded in 2014, the company has hundreds of employees across five continents. For more information visit velocityglobal.com.
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