Tech M&A plunges in second quarter

The technology industry may be weathering the worst of the economic storms, but tech M&A is suffering. The total enterprise value of deals in the sector in the second quarter was roughly $31 billion, down 59% from nearly $75 billion in the year-ago quarter, according to a new report from Updata Advisors. There were 194 deals in the quarter, compared with 256 transactions in the previous quarter and 263 in the year-ago period. Deal pricing is also feeling the pinch, with median multiples of enterprise value to trailing 12 months revenue falling 8% from a year ago.Why the sharp drop? Against the slumping macroeconomic backdrop, buyers are being more patient and selective in their purchases, especially given the growing number of targets, the investment bank says. The falling stock price of public companies also is making... [read full story]