Technology companies allocate billions of dollars into research in the hope of driving innovation. Over the last two decades the costs have sky-rocketed and companies are accelerating investments to stay ahead of the competition. Many management teams have decided to augment R&D by looking externally and are acquiring pioneering companies. Some investors have pondered whether M&A activity is a cyclical phenomenon which will diminish as the economy enters a later cycle. Our research, analyzing two decades of data and 900 public deals, suggests that M&A in the technology industry is more of a secular than cyclical trend. We believe that M&A is becoming outsourced R&D for firms seeking to augment their business models or product offerings in an increasingly competitive world. Moreover, the Pier 88 Investment Team is anticipating more industry consolidation driven by an abundance of cash on balance sheets, open credit markets, and companies taking advantage of the new repatriation law.