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Texas regional M&A update: H1 2021

Sep 29, 2021 · Authored by

M&A activity in Texas rebounds after slow start

Middle market M&A activity in Texas was stagnant in 2021 as the first and second quarters of the year were weighed down by the COVID-19 pandemic. While announced transactions in the first quarter were down year over year, the second quarter experienced a meaningful rebound in activity year over year.

A total of 44 transactions were announced in H1 2021, up slightly from 39 in H2 2020.
The aggregate disclosed value of M&A transactions in H1 2021 totaled $10.0 billion, up from $3.2 billion in H1 2020, but a slight increase from the $8.4 billion in H2 2020.

Texas middle market M&A transactions

Number of announced transactions (1)

Texas middle market M&A transactions h1 2021

Source: S&P Capital IQ

(1) Includes only transactions with disclosed enterprise value between $10 and $1 billion

Strategic buyers sweep M&A activity

Based on the number of announced transactions, strategic buyers continued to be the most active buyer type in the first half of 2021. During H1, strategic buyers represented 100% of announced transactions - first time since 2019.

The information technology segment was the most active during the first half of 2021, accounting for 23% of M&A deals announced. The financials and healthcare segments accounted for the second and third largest categories for the period, contributing 18% and 14% of transaction volume, respectively.