This Master's thesis conducts the event study analysis on the performance of the technology mergers and acquisitions during the 7th wave of M&A (2014 - present) that is distinctive in the number of technology companies’ acquisitions. The sample consists of 220 transactions with targets from technology sectors that were announced by American public companies. The factors explaining buyers’ stock returns are relative target size, the buyer’s technology affiliation, the companies’ affiliation to the same sector, the method of payment, the buyer’s financial strength and size of assets.
The results provide the strong evidence of optimistic market sentiments with respect to such investments for technology buyers, while the market reaction to the technology acquisitions announced by non-technology firms is negative. Additionally, it was found that the relative deal size is the significant and positive factor for non-technology acquirers, but it is slightly negative and significant for technology buyers. Finally, it was proved that the buyers’ stock prices perform better during horizontal M&A announcements.