Summer sun dries up deal flow

Contact: Brenon Daly

It really was the lazy days of summer, at least in terms of tech deal-making. With summer officially wrapping up on Labor Day, spending on M&A is running at less than one-fifth the level it has been in any of the three previous years. (For our purposes, we mark summer as beginning on Memorial Day and ending on Labor Day.) In that period this year, acquirers spent a mere $18bn – down from $139bn in the same period in 2008, $101bn in 2007 and $123bn in 2006.

And spending has slowed recently, dipping to just $4.3bn since August 1. (Nearly half of that came in a single transaction, eBay’s divestiture of its Skype property to a PE-led consortium.) Granted, it’s not uncommon for spending to dip in late summer, as even the hardest-working deal-makers look to kick back on the beach for a bit. But this year, it appears as if folks went ahead and remained on vacation. Speaking of which, we will not be publishing on Labor Day but will pick up again on Tuesday, the other side of summer.