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The total enterprise value of technology M&A deals in the third quarter plummeted to $15.3 billion, down 51% from $31 billion in the previous quarter, according to a new report from investment Updata Advisors Inc. Enterprise value as a multiple of the trailing 12 months' revenue fell 17% from the prior quarter and 12% from the year-ago period.  Deal volume in Q3 was up slightly, to 202 transactions, from the 194 deals announced in Q2. But the dealmaking environment, which was already deteriorating in July and August, fell apart in September, Updata says. "While deals are still getting done, they are taking longer to complete as buyers are cautious yet opportunistic during an uncertain economic period," says Ira Cohen, managing partner at Updata, in a statement. "The climate tends to favor strategic versus financial buyers, as they continue to seek key acquisitions to capture market share, expand product portfolios or reach new customer segments. We're also seeing selected cross-border activity with U.S. targets." Figure 3 Median M&A Transaction Multiples By IT Subsector - EV/TTM Revenue  Other findings from the report: • PE deals fell 43% among tech M&A transactions in Q3 • Cross-border deals amounted to 41% of tech M&A deals in the quarter, with IT services companies comprising most of the transactions • Financial tech deals represented 43% of all enterprise application software deals • Internet deals make up 14% of tech M&A deals in Q3 • VC-backed companies generated $4.5 billion in liquidity IPOs and M&A, down 66% from the year-ago quarter • Software-as-a-service companies may benefit from economic turmoil --Alain Sherter See third-quarter tech M&A report from Updata Advisors
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