Private equity could soon see its tech M&A bubble burst, warns report

A flurry of technology mergers and acquisitions (M&A) are set to happen before 2020, a new report predicts. However private equity firms – which have recently been elbowing trade buyers out of the way to splash the cash on tech targets, such as in the $5.3bn (£3.8bn) buyout of Nets – could soon see their bubble burst. According to a report from tech-focused deal advisers Hampleton Partners, the availability of cheap debt has allowed private equity to outbid trade buyers. But as interest rates look set to rise, this bubble could burst – possibly causing a price correction. "Despite the slowdown in the second half of last year, the overall outlook in the foreseeable future is very positive as continued technological disruption forces established vendors and new market entrants to innovate and stay competitive via tech M&A," said Hampleton founder Miro Parizek.