Deal Tracker: Infotech M&A volume falls to year-to-date low in November

Deal volume among US and Canadian information technology companies dropped 21.5% year over year in November, marking the sector's lowest monthly total in 2023, according to S&P Global Market Intelligence data.

There were 124 deals struck in November, compared to 158 transactions during the same month in 2022. Total M&A deal value also decreased year over year to $2.55 billion from $6.43 billion.

November's M&A activity also marked a month-over-month decline from October, which saw 151 deals worth $8.26 billion in total. By comparison, the sector logged its highest monthly deal volume in January with 187 transactions.

None of the transactions announced in November topped the billion-dollar mark.

Brookfield Infrastructure Partners LP's agreement to acquire substantially all assets of Cyxtera Technologies Inc. for $775.0 million was the sector's biggest deal last month.

Cyxtera, which provides datacenter products and services, filed for Chapter 11 bankruptcy protection in June. In November, the company secured bankruptcy court approval for its reorganization plan and sale to Brookfield.

Cyxtera expects to complete the transaction with Brookfield, which is subject to regulatory approval and other closing conditions, and emerge from bankruptcy in the first quarter of 2024.

Moelis & Co., Wells Fargo Securities LLC and TD Securities (USA) LLC are acting as financial advisers to Brookfield, while Guggenheim Securities LLC and Evercore Inc. are advising Cyxtera on the transaction.

– Take a closer look at the infotech sector's largest deal in 2023. – Read more about early-stage funding for IT companies in the US and Canada in the third quarter. – Use S&P Capital IQ Pro's Transactions Statistics page to run a custom screen of M&A by industry or geography.

 

The second-largest deal announcement in November was Zillow Group Inc.'s proposed acquisition of Enchant LLC for $500.0 million. The acquisition price includes $400.0 million of initial cash consideration and up to $100.0 million in a potential cash earnout. The companies did not disclose when they expect the deal to close.

Cisco Systems Inc.'s proposed acquisition of cybersecurity software company Splunk Inc. is still the sector's biggest deal this year as of Nov. 30, followed by Qualtrics International Inc.'s sale to private equity firm Silver Lake Technology Management LLC and Canada Pension Plan Investment Board.