-Total deal number down, but technology and software continue to lead financial transactions in Utah, with the state building a strong funding pipeline for the future-
MountainWest Capital Network (MWCN) released its 26th annual Deal Flow Report, revealing Utah reached a new historical high for the value of financial market transactions, which includes public and private deals, as well as mergers and acquisitions. The Deal Flow Report is Utah’s only in-depth analysis of the equity-related financial transactions that shaped the state’s business environment in 2020.
The COVID-19 pandemic had a significant impact on Utah businesses in 2020, with only 289 tracked deals during the year, a significant drop from 474 in 2019 and 483 in 2018. However, the total value of those deals was $26.4 billion, a rise from $25 billion in 2019. Major deals that anchored the year and garnered national headlines included the sale of Ancestry.com for $4.7 billion along with the sale of the majority stake in the Utah Jazz and its related assets.
“While 2020 was a year few people would like to repeat, it is encouraging for the future to note that the total value of deals in the state was the highest we have ever seen,” said Kady Reese, MWCN’s Deal Flow Vice-Chair. “This report provides a first-hand glimpse into what has continued to make Utah one of the best places in the country for innovation and success.”
Technology and software continue to lead across the state in raising funds, accompanied by increases in overall transaction value for consumer retail and healthcare. Key indicators in other sectors point to a broad diversifying of Utah’s industries and a strong pipeline for funding in the future.
The overall value of Utah’s mergers and acquisitions was high in 2020, in spite of lower total numbers of transactions. While public markets overall were affected by the COVID-19 pandemic, the state had several noteworthy transactions, including Vivint Smart Home, which reached a valuation of $4.2 billion.
The Deal Flow Report is a publication of the MWCN, a nonprofit organization, created to foster a dynamic flow of information about capital formation and distribution. It does not report on transactions that were either confidential or otherwise not publicly disclosed.
The full 2020 MWCN Deal Flow Report can be viewed at MWCN.org/dealflow.