In light of Dell's record-breaking agreement to acquire EMC (NYSE: EMC), we decided to take a wider look at recent PE-backed add-on activity in the IT industry. According to the PitchBook Platform, there were 336 completed add-ons in the sector last year, up 117% from 2010; the pace has only accelerated this year, as 265 such deals have closed in 2015 thus far. While the majority of IT add-ons occur in the U.S., last year saw 121 deals take place in Europe, a 57% jump over 2012 numbers. As tech valuations have moved higher and higher, the data continues to show that sponsors have looked for lower-multiple, complimentary businesses to pad their existing portfolio companies.
Top add-on sponsors in the IT industry over the past two years and their deal counts: