Texas M&A Trends – Fourth Quarter 2020

Alerts / January 29, 2021

BakerHostetler will present data regarding Texas’ robust M&A market each quarter, with useful comparisons to the U.S. market overall. The alert focuses on M&A volume and value, identifies the most active industries, and includes market commentary from our Texas-based M&A attorneys.

M&A activity for 4Q20 in both Texas and the U.S. continued to improve generally compared with 3Q20, with Texas M&A activity outpacing the results in the broader U.S. market by a relative increase in the number of deals. Both markets saw valuation metrics buoyed by large M&A transactions – including ConocoPhillips’ acquisition of Concho Resources, Thoma Bravo’s acquisition of RealPage Inc. and Pioneer Natural Resources Company’s acquisition of Parsley Energy, all of which had a Texas connection. The first half of 2020 reflected a dearth of large transactions, while the second half saw increased and continuing large M&A activity. The underlying thesis for these transactions spanned the spectrum – from cost-cutting consolidations (seen, for example, in the hard-hit energy industry) to transformative combinations in the tech space (such as Salesforce’s acquisition of Slack Technologies, which the Salesforce CEO described as a combination to “transform the way everyone works in the all-digital, work-from-anywhere world”[1]).

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[1] Salesforce – Slack Joint press release, dated Dec. 1, 2020.

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