Analysis

SPACS leading the way

, S&P Global market intelligence

The economy is finally lapping the coronavirus closures from March 2020, and in doing so, some areas of interest are showing strong growth. U.S. information technology M&A, for instance, spiked in March this year, up 66.4% over last year by deal volume, with 243 deals for the month. March U.S. deal volume was led by three 10-figure transactions registered in three separate subsectors. Those hefty transactions also contributed to an all-time global record in tech deal values, according to 451 Research, an offering of S&P Global Market Intelligence.

Helping drive the boom in tech consolidation was the rise of special purpose acquisition companies, or SPACs, as a primary vehicle for companies to go public through a reverse acquisition.

In the non-SPAC deal space, March was led by Hitachi Global Digital Holdings Corp.'s eleventh-hour $9.50 billion bid for enterprise and product solutions provider Globallogic Worldwide Holdings Inc., which was announced March 31. The terms imply a sturdy price of 12.3x the trailing 12 months of revenues for Globallogic, and Hitachi said the transaction will create synergies across its lines of business and by "accelerating the advanced digital transformation of social infrastructure such as rail, energy, and healthcare at a global scale."

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