Deal tracker: US infotech M&A activity drops in February

Deal-making activity in the U.S. information technology sector fell in February, down 19.5% year over year to 178 transactions, according to S&P Global Market Intelligence data.

The February total also marked a 38.8% decline from the 291 transactions announced in January.

Three of the infotech deals announced in February exceeded $1 billion in value, including two private equity exits. The largest of those deals targeted software developer ETQ LLC, which sells products focused on environmental health and safety and compliance management. Sweden-based Hexagon AB, which provides connected device tracking systems for businesses and governments, agreed to acquire ETQ for $1.2 billion, allowing private equity firm TCMI Inc. to exit its investment in ETQ. Under the deal, ETQ will operate as part of Hexagon's Manufacturing Intelligence division.

The transaction is set to close early in the second quarter.

The month's second-biggest deal was mortgage software, data and analytics provider Black Knight Inc.'s acquisition of the remaining interest that it did not already own in financial technology company Optimal Blue Holdco LLC. Black Knight acquired the stake from an investor group composed of Cannae Holdings Inc. and Thomas H. Lee Partners LP-affiliated entities for about $1.16 billion.

Black Knight previously owned 60% of the fintech company.

February's third-largest infotech transaction was medical technology company Masimo Corp.'s proposed $1.03 billion purchase of Viper Holdings Corp., the parent of consumer technology company Sound United. The companies expect the transaction to be completed in mid-2022, subject to customary closing conditions. Masimo's shares tumbled 35% after the deal was announced Feb. 15.

None of the February deals eclipsed January's announcements by value. The largest infotech deal announced for the year to date remains Vista Equity Partners and Evergreen Capital Corp.'s agreement to take Citrix Systems Inc. private for $17.18 billion. As part of the deal, Vista Equity and Evergreen Capital plan to combine Citrix Systems with TIBCO Software Inc.