Abstract
We study listed banks in 27 OECD countries that executed technology mergers and acquisitions (M&As) over the two decades spanning 1998–2019 and assess their market performance during the COVID-19 pandemic. Our findings reveal a significant relationship between past bank technology acquisitions and market valuation when digital transformation was essential. Banks that completed a technology M&A in the earlier decades experienced significantly higher market valuations than those that did not. These gains occurred across all countries, regardless of lockdowns, suggesting that the benefits of technology acquisitions were not solely driven by digital adaptation needs but recognized by financial markets as a broader strategic asset.