The Internet of Things (IoT) and Big Data analytics are driving a record number of merger and acquisition (M&A) deals, both for the second quarter of 2016 and the entire year to date, says a new report from Ernst & Young (EY).

The second quarter saw 28 deals valued at $1 billion or more, setting a new record for big ticket M&A transactions in a single three-month period. The number of IoT-related deals soared by 28 percent year-over-year, and by 26 percent for the year. Big Data is doing nicely too, with deals rising by 13 percent in the last quarter, and 29 percent for the year to date.

In the second quarter, EY said publicly announced M&A deals in tech totaled around $127 billion.

EY said the growth in IoT and Big Data analytics M&A deals was well above that of other technologies, and that it would likely continue as enterprises race to implement next-generation analytics capabilities.

Such capabilities include machine-learning and cognitive computing, which enable more enhanced data visualizations, customer data analytics and business intelligence for end users.

EY also noted four other disruptive technologies that have seen an increase in M&A activity in 2016, including cloud computing (especially Software-as-a-Service), healthcare information technology, gaming and payments and financial services. In addition, mobile gaming, online video, security, semiconductor packaging, wireless networking and various e-commerce businesses have all seen an increase in M&A activity over the last year.

The report forecasts that global tech M&A activity this year will likely surpass that of 2015 by the end of the next quarter. As such, the report highlights how more established tech firms are increasingly using M&A as a means to protect themselves from a wave of disruptive technology startups, EY analysts said.

“Because technology is an industry in major transformation, we expect 2016 technology M&A to continue at this near-record pace for the foreseeable future, driven by the disruptive digital technologies that the industry is itself bringing to market,” said Jeff Liu, EY’s global technology industry leader, transaction advisory services. “We’ve already seen 15 deals valued at more than $1 billion in the last month and expect global technology M&A to match or surpass last year’s record pace by the end of the third quarter.”

According to Liu, much of the activity is being driven by “non-tech companies” using acquisitions as a means of transforming their own businesses and expand their range of digital products and services.

Also worth highlighting is the rise of Chinese players on the M&A scene. Chinese buyers spent more on tech M&A in the last quarter than ever before, at $32.3 billion. To date, Chinese firms have spent $47.4 billion on tech M&As, which is already 19 percent more than the $39.9 billion they spent in 2015.

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