Online & Mobile transaction volume increased 12 percent over the past three months, from 638 to 716. Deal value declined 29 percent, from $48.5 billion to $34.5 billion. Volume throughout the past five quarters reached its peak in Q2 2015, whereas value reached its zenith in Q4 2014.
The top ten largest transactions accounted for 54 percent of the industry’s total value in Q1 2016, compared to 29 percent in Q1 2015. Also of note, five of the industry’s top ten largest acquisitions in Q1 2016 were based outside of the U.S.
Two of the industry’s five highest value deals in Q1 2016 were Capital Markets related. Along these lines were IHS’ announced merger with Markit Group, a global provider of financial information services, for $11 billion; and Nasdaq’s announced acquisition of The International Securities Exchange, an operator of three electronic options exchanges, from Deutsche Börse Group for $1.1 billion.
SaaS & Cloud volume improved 20 percent in Q1 2016. It continued to be the most active Online & Mobile market, representing 30 percent of the industry’s aggregate volume year-to-date. E-Marketing & Search volume gained 19 percent in Q1 2016, which reversed a downward trend during the preceding two quarters. E-Commerce deal activity remained constant in Q1 2016. This followed a 14 percent rise in Q4 2015.
The number of transactions in the mobile application subsector rose 35 percent, from 88 to 119.
Notable mobile-based deals in Q1 2016 included Microsoft’s announced acquisition of Swiftkey, which provides predictive keyboard technology for Android and iOS devices, with a reported purchase price of approximately $250 million; and Gopro’s announced acquisitions of video editing apps Replay and Splice for $105 million.