Merger and acquisition (M&A) activity in Canada’s tech space climbed 16% last year as companies worldwide pursued smart technologies.
This according to an Ernst & Young report released Tuesday, which said global M&A deals totalled US$119 billion in 2010.
Canadian companies pulled together 83 deals last year compared with 71 the year before, while global deals were up 41% to 2,658.
"Last year’s deals reflect the demand for smart everything. We’re talking about smartphones, tablets and other mobile devices and infrastructure," said Karen Atkinson, Ernst & Young’s national technology industry leader. "But information security, cloud computing and social networking also spurred dozens, if not hundreds, of deals."
Atkinson told Business in Vancouver that the number of small deals also increased last year, with 216 deals worldwide valued at more than US$100 million compared with 132 in 2009.
She explained that small deals are evidence of large firms gobbling up startups to feed their technology and innovation pipeline.
"That’s where they get their future growth, not only from an employee perspective but from a technology perspective," Atkinson said.
Despite the fact that Canada accounted for a relatively small portion of global M&A activity, Atkinson predicted more growth at home in 2011.
"I think Canada is very well represented relative to these global trends, what you see in Canada is a microcosm for what you see in the rest of the world."