Statistics released by research firm Dealogic show that merger and acquisition (M&A) activity among U.S. companies reached an all-time monthly high of $243 billion during May, and was driven largely by players in the telecommunications and technology sectors. The broadband revolution and its accompanying surge in data traffic and demand are viewed by analysts as the top factors behind this year’s M&A boom, which has seen $406 billion in deals thus far among technology and telecommunications firms. At that pace, Dealogic projects that 2015 will end with the highest yearly total of telecommunications and technology-related M&A deals since 2000. Continuing low interest rates are also considered a key driving force behind the record M&A pace, which is expected to balloon even further in advance of the predicted decision of the Federal Reserve this fall to tighten U.S. fiscal policy.
May’s M&A total of $243 billion shatters the previous record of $226 billion set in May 2007. During the past month, telecommunications deals in the U.S. market accounted for $92.2 billion, or 38%, of the May M&A total. Technology-related transactions that consist mainly of “middle market” deals accounted for another $49.2 billion, or 20%, of the May total. Meanwhile, June got off to a fast start as chip-maker Avago Technologies announced plans on Monday to buy rival Broadcom Corp. in a $37 billion cash and stock transaction touted as the largest pure technology deal ever.