There were 151 M&A transactions announced during the first month of 2011, according to Signal Hill Updata’s proprietary database. That’s more than any other January for the past 10 years. These 151 transactions totaled more than $6.1 billion in enterprise value, with median deal size coming in at nearly $40 million. Two major deals were announced already this year – Terremark’s $1.8 billion acquisition by Verizon and Patni Computer’s 65% stake purchase by iGate Computer for $1.1 billion. Even without these transactions, the first 31 days of the year brought in the highest total EV for the month of January since 2007 and more than 3 times January 2010’s total EV of $1.8 billion.
An onslaught of deal making began at the beginning of the fourth quarter of 2010, as we noted in our 2011 IT M&A Outlook. Historically, January has been one of the slowest months of the year for announced M&A deals. If this early pace of rapid transaction announcements continues, 2011 is well on its way to being the best year IT M&A has seen in years.