California’s performance last year is another source of optimism for the US economy. Mergers and Acquisitions levels were up, especially in California’s Technology sector.
The Golden State’s financial performance in 2012 could be another sign of country-wide economic recovery. In the recently released Mergermarket’s California M&A Round-up, mergers and acquisitions in the state were the highest last year since 2009, with the Technology sector dominating. In 2012, M&A activity reached 651 deals valued at $91.1 billion, a yearly deal value not only best since 2009, but second-best since 2006. The fourth quarter of 2012 was a particularly good performer, which reached $23.2 billion and 173 deals, which was a 10.4 percent increase in Q3 2012 and a 25.3 percent increase from Q4 2011.
The tech industry dominates…
Tech M&A was the most active sector of California’s 2012 economy.This trend reflects positively on the US economy at large, though California is generally the most active US state for M&A. Performance was particularly strong for the state’s trademark industry, as the Technology sector was the most active sector in 2012. Tech M&A had a 30.5 percent market share at $27.8 billion for 209 deals, its dominance carrying over from 2011 when it reached $42.3 billion for 219 deals.
… But individual deals in other sectors outperformed
Though Tech was the most active sector, the largest deal and the top mid-market deal of the year were in the Pharma, Medical and Biotech sector - the second most active sector in California in 2012 with 24.9 percent of market share by deal value. The target of the largest deal was a hostile transaction attempted by Roche Holding Ltd to acquire genetic analysis tools and tech provider Illumina Inc, but the offer expired and the deal was lapsed. The third most active sector by value was Financial Services at 9.8 percent of market share, and third by deal volume was Industrial & Chemicals at 11.4 percent.