ANALYSIS: Which Silicon Valley Giants Are Making the Most Deals?

The highest-earning Silicon Valley tech companies have been busy with M&A and investment deals lately, but one of these top firms was by far the most dominant in dealmaking.

The top 10 companies on 2024’s Fenwick–Bloomberg Law SV 150 List, ranked by 2023 revenue, were all involved in some form of M&A or investment activity between the beginning of 2023 and the first quarter of 2024. Racking up a total of 78 acquisitions and investments worth $37 billion dollars in the past five quarters, all of the top 10 made at least one deal as an acquirer or investor. They made few or no deals as a seller or target; between them, they totaled only 14 such deals within the same five-quarter period.

NVIDIA Corp. has been, by far, the most acquisitive company of the Top 10. In 2023 and the first quarter of 2024, the Santa Clara-based software company completed 33 M&A and investment deals as aquirer or investor, compared to just 13 in the previous five-quarter period. All told, NVIDIA has accounted for almost half of all acquisitions in the Top 10 (33 out of 78) since the beginning of 2023.

NVIDIA’s revenue is said to have increased due to a surging demand for accelerated computing and artificial intelligence. But it appears that the company is also strategically collaborating with others to exert its dominance in the AI market. The high number of its acquisitions also factors into NVIDIA’s significant move up this year’s list of top Silicon Valley earners—from placing 14th on the previous list to breaking into the top 10 and placing 4th on this year’s list.

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Google’s parent company, Alphabet Inc., which has historically been the most active acquirer and investor on the list, was the second-most acquisitive company among this year’s top 10. Compared to 37 deals in 2022, Alphabet made only 10 acquisitions in 2023 (plus one more in Q1 2024). But it nevertheless maintained its position as the second-highest earner in Silicon Valley. Alphabet was also the most frequent seller in the top 10, having been a target in five deals in the past five quarters.

Apple Inc. continues to prove that acquisitions and investments are not the only key to high earnings in Silicon Valley. Apple maintained its No. 1 position since 2019 while being one of the least involved in M&A and investment activity. Apple acquired or invested only five times in 2023 and Q1 2024, and hasn’t been involved in any deals as target or seller within the same period.

The highest-valued deal among the 2024 top 10 was No. 6 Cisco Systems Inc.’s acquisition of Splunk Inc., another previous SV 150 software company, for $28 billion in September 2023.

Software remains the prime target industry for the top 10 Silicon Valley firms, as was the case in previous years. Of all 78 deals in 2023 and Q1 2024, 38 involved a target in the software industry.

The types of businesses targeted in the software industry were spread across computer software, applications software, enterprise software and services, and medical information systems. Other industries identified were computers; consumer, cyclical; consumer, non-cyclical; industrial; communications; andfinancial. Only one semiconductor acquisition was completed within the period.

In other analysis articles covering the results of the 2024 Fenwick – Bloomberg Law SV 150 List:

• Colin Caleb focuses on the Top 10, especially NVIDIA’s rise to No. 4 on the list;
• Preston Brewer looks at the changing role of IPOs in the makeup of the list; and
• Emily Rouleau takes a closer look at the newcomers to the 2024 list.

Bloomberg Law subscribers can find related content on our M&A Deal Analytics resource.

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