Companies are continuously making multiple small acquisitions and leveraging them together to address strategic business initiatives.

Steger noted that this pattern enables buyers to maintain their competitiveness and also capitalise on current and evolving trends.

"However, given the rapid pace and competitive nature of these deals, it still demands rigorous deal valuation, structuring, due diligence and integration."

The report shows cloud computing and SaaS were the drivers for many deals, and in Q1 2011, there were multiple deals in which mobile device manufacturers purchased content and services providers, which ensured their entry into traditionally non-technology industries.

Also, video deals were apparent in every sector in Q1, and a quest for growth was evident in the level of cross-border deals in the same period. Ernst & Young also notes a strong outlook for 2011 M&A.