By Claire Poole – The Texas Lawbook March 2, 2020
Dealmaking
in Texas isn’t all about oil and gas, of course (ask anyone in Dallas or
Austin). While it still makes up the majority of M&A in the state, two
other big industries – health care and technology – contribute big chunks to
the overall activity.
PitchBook, in conjunction with RSM, released
data last week on M&A and private equity activity in the two sectors
overall and offered a few takeaways.
In
health care/life sciences, M&A volume contracted by nearly 25 percent but
deals got significantly larger, averaging a record $2.16 billion last year.
The
firms say ongoing labor shortages are helping fuel consolidation across several
segments and “consumerization” of the industry continues, as health care
providers look to acquire or develop telemedicine and patient-facing
capabilities.
In
information technology, almost $530 billion changed hands in M&A transactions
last year while deal volume declined 16 percent over 2018.
However,
the firms noted that dealmaking in cybersecurity is on the rise due to
increased attacks, with the average total cost of a data breach reaching $3.9
million last year.
Software
investors with sizable portfolios also are looking to expand into other,
complementary services, the firms said.
Last
week in Texas, in-state attorneys managed to churn out some deals despite
worries over the coronavirus, the stock market pullback and malaise in the oil
and gas sector, among other things.
There
were 12 deals valued at nearly $3.7 billion last week, versus 16 transactions
worth $1.25 billion the previous week and 12 deals valued at $2.04 billion at
this time last year.
Nine
firms and 62 Texas lawyers were involved in the activity, which included 10
M&A/private equity/venture capital deals totaling $2.56 billion and two
capital markets transactions worth $1.13 billion.
For
more information on all of these deals, visit TexasLawbook.net.
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