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JPMorgan's Global Chairman On Tech M&A: 'Scale Does Matter And Competition Is Fierce'

JPMorgan's Global Chairman On Tech M&A: 'Scale Does Matter And Competition Is Fierce'

Merger and acquisition activity is set to see a large boost in the coming months, at least according to JPMorgan Global Chairman Jennifer Nason.

Speaking to CNBC, Nason noted that the market hasn't seen much M&A activity among "big" technology companies due to a fear of integration risk and missing technology cycles. However, she stated that it is possible companies will feel more of a "push" to undertake large-scale M&A deals.

She continued that creating meaningful scale "does matter," especially at a time when competition is "fierce" with many companies "jumping into each other's backyards."

Related Link: Facebook Acquires VR Audio Technology Company Two Big Ears, Offers Its Techology For Free

So, how big of a deal could investors expect? According to Nason, companies valued in the tens of billions could be involved in M&A. She added that a dip in valuation could further prompt a buyer to act quickly and "pick those opportunistic moments in which to pounce."

Nason further suggested that names like Apple Inc. (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Facebook Inc (NASDAQ: FB), among other mega-cap players will emerge as buyers given their superior financial flexibility. In fact, these names weren't considered to be names active in the M&A space in the past, but now these companies "are on every buy list" along with Chinese investors who represent another "entrant in the M&A game."

Nason also pointed out that roughly half of the companies in JPMorgan's IPO backlog are active in evaluating what an M&A transaction might look like instead of a public offering.

Posted-In: CNBC Jennifer Nason JPMorgan M&AAnalyst Color M&A Tech Media


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