The tech sector has already seen quite a few big acquisitions this year, which has been helping the broader market. In fact, per a new report by consulting firm PwC, tech-related mergers and acquisitions rebounded in the third quarter. Companies seem to be defying trade war fears and uncertainty around U.S. mid-term elections, and going for mergers and acquisitions.In the latest development, International Business Machines Corporation IBM announced on Oct 28 that it will be acquiring open source software company Red Hat, Inc. RHT for $34 billion. If approved, this will be one of the biggest tech mergers in history.IBM Bets Big with Red Hat AcquisitionOn Sunday, IBM said that it will be acquiring Red Rat for $34 billion. This will be IBM’s largest deal ever, and, reportedly, the third-highest tech merger in the history of the United States. Per a joint statement by the companies, IBM will acquire all shares in Red Hat in cash at $190 each. The deal will be a big leap for IBM and enhance its cloud offerings.The third-largest tech deal follows the Dell Technologies Inc.’s DVMT buyout of EMC for $67 billion in 2016 and the $41 billion acquisition of SDL by JDS Uniphase in 2000, excluding the AOL-Time Warner merger.IBM was once known for its computer hardware. However, over the years, cloud computing has become an integral part of its growth strategy, much like Amazon.com, Inc. AMZN and Microsoft Corporation MSFT. With this acquisition, Red Hat will become a unit of IBM’s Hybrid Cloud division. Tech Mergers Rebound in Q3It seems that companies are braving trade war fears and uncertainty around U.S. mid-term elections and going for mergers and acquisitions. According to data compiled by Thomson Reuters, a record $2.5 trillion in mergers and acquisitions was announced in the first half of 2018.Moreover, per a new report from PwC, tech-related acquisitions and mergers rebounded in the third quarter after witnessing a slump in the second quarter. Tech-related mergers announced in the third quarter touched $66.4 billion, double the value announced in the second quarter and the highest in almost two years.Prior to IBM’s announcement of the acquisition of Red Hat, Broadcom Inc. AVGO acquired CA, Inc. CA for $18.9 billion in July. Earlier this month, Cloudera, Inc. CLDR and Hortonworks, Inc. HDP announced that the two companies would merge in a $5.2 billion deal.The third quarter also saw Renesas Electronics Corporation’s $6.7 billion planned acquisition of IDT Corporation IDT. Microsoft, Broadcom and Cloudera each carries a Zacks Rank #2 (Buy), while IBM, Red Hat and Amazon each has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.Per the report, overall around 485 deals were announced in the third quarter, up 15% from the second quarter. In May, salesforce.com, inc. CRM completed the $6.5 billion acquisition of MuleSoft. In June, Microsoft announced that it would be acquiring code-sharing service, Github, for $7.5 billion, which was recently completed.Summing UpThe increase in mergers and acquisitions are taking place against the backdrop of a healthy economic outlook. Moreover, despite markets suffering on concerns of slowing global economic growth and escalating trade tensions between the United States and China, with tech stocks taking a beating, mergers and acquisitions are proof that companies are defying these fears.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Hortonworks, Inc. (HDP): Free Stock Analysis Report Salesforce.com Inc (CRM): Free Stock Analysis Report CA Inc. (CA): Get Free Report Microsoft Corporation (MSFT): Free Stock Analysis Report Red Hat, Inc. (RHT): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Cloudera, Inc. (CLDR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research