Merger and acquisition (M&A) has seen an uptrend this particular year, especially when the recovery has kicked started. Grant Thornton has come out with the deal tracker for February month and it has seen a good amount of traction in terms of volumes.

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It is much higher than the previous year February 2020. On the other hand, the big trend that is emerging is the non-tech companies looking at a tech startup to adopt the technical advantage as well as get the digital space going.

Prashant Mehra, Partner at Grant Thornton Bharat, said, “Majority of the deals have actually witnessed within the usual sector. But many non-tech companies have bought tech firms in the startup space which can help advance digital transformation and provide and boost the customer experience as well.”

“What is really unique is that we have seen a lot of large companies such as ICICI, Tata they have actually gone into acquiring these tech companies.”

Talking about the sector seeing the most number of M&A deals, Mehra added, “Infrastructure definition is now advance from brick and mortar to include the information highways and technology as well."

"These large companies, their systems are such that it takes them a while to incorporate something of their own and these tech companies have already built their platform, it is like plug and play for them. I think where we will see a lot of action is anything that is around e-commerce. My bet would be anything around e-commerce, health tech, edu tech anything around these sectors.”

Watch accompanying video for more.

(Edited by : Bivekananda Biswas)

First Published:Mar 16, 2021 5:12 PM IST