Private-equity deals for IT soar as companies modernize infrastructure

Private-equity investments in technology soared in the final months of 2020 as investors sought to take advantage of a rise in corporate IT spending.

Investors spent $65.17 billion last year on 2,138 private-equity deals with US-based information technology companies, down from $72.47 billion over 2,007 deals in 2019 but far outpacing investments in any other sector, according to market research firm S&P Global Market Intelligence.

Nearly half of that spending came in the fourth quarter, which saw $31.73 billion in investments, compared with $11.22 billion in the previous quarter and up more than 90% from the same period in 2019, the research group said.