Non-tech companies fostering Technology acquisions

The report covers global capital markets and mergers and acquisitions insights, trends and issues affecting the industry, and performance and valuation data.

As innovation becomes key to business success, legacy firms are embarking on the inorganic growth path to leverage the technology innovations from Technology companies. And these incumbent organizations are benefiting from engaging with companies that bring innovation faster with shorter turnaround periods. A major shift is that these firms have become more comfortable with technology, trying to recast themselves as tech companies as seen in the technology-intensive and acquisitive Aerospace & Defense, Industrial, and BFSI industries.

Companies in other industries are also active in tech acquisition to help reduce costs, competition, and disruption, expand to new geographies, and explore new market opportunities.

A particularly popular technology to garner patrons across all industries has been artificial intelligence (AI). With companies from almost all industries acquiring or investing in AI companies to capitalize, enhance or expand their capabilities, while also adding to their skilled talent pool; this tech has had a major impact on deal-making. Other major technologies drawing attractive valuations from a diverse range of acquirers include analytics, automation, cloud, cybersecurity, and digital operations/management platforms.

Though, initially not comfortable with the high prices that many tech and AI companies fetch, companies outside that sector have now become much more fluent in the language of tech company valuations, leading to some notable large-ticket transactions in the history of deal-making.