JLL: Bay Area Tech M&A Market Going Strong into 2017

JLL, Bay Area, Tech M&A, Silicon Valley, San Francisco

JLL, Bay Area, Tech M&A, Silicon Valley, San Francisco, Capital IQ, JLL Research

During Q4 2016, over $13 billion worth of tech M&A activity was logged in the San Francisco Bay Area in 71 transactions. The majority of acquired companies fall within Internet Software and Services category with 30 deals, followed by Application Software with 19 deals.

More than 65 percent of Bay Area tech M&A deals were done by Bay Area investors. The strong correlation between geographical proximity to investors and M&A deals reinforces the idea that location is a significant factor for tech startups seeking an M&A exit strategy.

A number of subleases in the San Francisco Bay Area is partially explained by the robust local M&A deal flow which often prompts consolidation strategies. For 2017, M&A deal flow is likely to increase as tech startups seek alternatives to an IPO.

Source: JLL Research, Standard & Poor’s Capital IQ

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