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Canadian technology sector M&A activity accelerates into 2021

Author(s): Mark Longo, Tara Folk

Dec 14, 2020

As a tumultuous 2020 comes to a close, Canada’s technology sector is decidedly on the radar for U.S., international and domestic strategic and financial buyers. The latter half of the year has witnessed a significant increase in technology merger and acquisition (M&A) transactions, with a variety of important trends driving increased activity. In this article, we review the state of the market and the factors contributing to its momentum.

Deal volumes and value

The temporary slowdown in M&A transactional activity during the early months of the COVID-19 pandemic has given way to an increase in closed deals and active processes. Despite a turbulent macroeconomic environment, the North American technology industry continues to demonstrate both its resilience and its reputation as a desirable market in which to invest. As reported by Preqin, after lower reported deal activity in the first half of 2020, deal volume and values rebounded in North America, resulting in total third quarter deal values slightly surpassing pre-pandemic levels for the same period of 2019...