Report: IPO Fever Lifting Valuations, Slowing M&A

A report today says that "IPO fever" is lifting valuations of technology companies, while slowing the pace of mergers and acquisitions. The report from PricewaterhouseCoopers, says that technology businesses are continuing to lead other sectors in terms of U.S mergers and acquisitions activity, with 13 technology IPOs and another 14 IPO registrations in the first three months of the year. Technology sectors transactions totaled $28.9 billion, despite a volume decrease to 64 deals, versus 69 deals close in the previous quarter, and 76 transactions a year ago. Calling IPO valuations "frothy", the report said that so far, those rich valuations have not crept too much into M&A deals. In terms of sectors, the report said that software transactions "far outweighed" others, with 39 percent of deal value and 28 percent of deal volume; interestingly enough, semiconductors were next, with 19 percent of deals and 20 percent of deal volume in the quarter. PwC published its quarterly analysis based on data from Thomson Reuters. (Photo courtesy BigStock Photo).