The number of tech-oriented M&A deals during the second quarter declined by 15 percent to 55 transactions, a weakness attributed to “global macroeconomic trends” as well as acquirers who spent time ingesting some of their bigger acquisitions from past quarters, according to PricewaterhouseCoopers’ technology M&A Insight’s report.

But even though deals declined, the technology sector outshines all other categories with 20 percent of all M&A volume. And the cumulative transaction volume for deals increased eight percent to $31.8 billion, buoyed by Google’s $12.9 billion buyout of Motorola.

However, despite that whopper, there have been no announced tech deals that have topped the $5 billion mark in the past six months.

Nonetheless, the authors of the report predict that the huge cash balances of big tech companies like Apple, Google and Microsoft could help spark a new wave of buying.

“The decline in deal volume experienced in recent quarters will not continue indefinitely. With technology companies’ insatiable appetite for growth, a substantial portion of which will come from inorganic activities, deals are sure to continue. US S&P 500 corporate cash balances are estimated at more than $1.1 trillion, much of which is held by technology corporates poised for acquisitions of technology, talent, and opportunities to address new markets. These cash balances combined with private equity dry powder, a portion of which will fuel future technology buys, offer plenty of potential for technology deals, albeit at a slightly slower pace in the short term. As the global economic outlook improves and US markets stabilize, we expect technology deal activity to return to higher levels.”

Here’s a look at some of the charts from the report:


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