In recent years, M&A activity has been on the rise, fueled by a strong economy, low interest rates, and a desire among companies to expand their reach and increase their market share. Some of the notable mergers and acquisitions in recent years include:
- Microsoft’s $19.7 billion acquisition of Nuance Communications, a speech recognition and AI company, in April 2021
- Amazon’s $8.45 billion acquisition of MGM, the movie studio behind the James Bond franchise, in May 2021
- Aon’s $30 billion merger with Willis Towers Watson, two of the largest insurance brokers in the world, in July 2021 (though the merger has since been called off due to regulatory concerns)
- NVIDIA’s $40 billion acquisition of Arm Holdings, a chip designer, in September 2020 (still pending regulatory approval)
- Salesforce’s $27.7 billion acquisition of Slack, a workplace messaging platform, in December 2020
Overall, M&A activity is expected to continue in 2022 as companies seek to take advantage of a strong economy and favorable financing conditions. However, uncertainties surrounding the ongoing COVID-19 pandemic, geopolitical tensions, and regulatory scrutiny may also impact the landscape of M&A.