Skip to main content

Technology, Media and Telecom M&A Trends 2015

The global networked economy has gained new momentum in 2015, with more strategic mergers and acquisitions (M&A) activity. According to the latest global market study by Mergermarket, the Technology, Media and Telecom (TMT) sector had a very active first half (H1) 2015.

Total deal value reaching $396.3 billion -- that's a 26.1 percent increase compared to H1 2014. As a result, the TMT sector reached both its highest deal value and share in global deal making (22.8 percent) for any H1 period on Mergermarket record (since 2001).

The announced domestic acquisition of Time Warner Cable by Charter Communications within the Technology sector influenced the overall value, constituting 19.6 percent of the sector's total sum.

The high price of this deal reflects a trend of increasing valuations throughout the whole M&A market this year, demonstrated by the average size of a TMT transaction reaching the highest on record in H1 2015 at $504 million per transaction -- exceeding the previous highest average of $383 million in H1 2006 by $125 million.

Furthermore, both cross-border and domestic deal values reached the highest H1 levels for TMT on Mergermarket record at $184.6 billion and $246.7 billion, respectively.

However, transatlantic activity reached only $30 billion in H1 -- that's a decline of 37.4 percent compared to $47.9 billion during the same period last year, indicating surges in domestic activity and increasing outbound deal flows to and from developing markets such as Asia.

The U.S. continues to drive activity within the sector, with total deal value reaching $238.4 billion -- that's a remarkable 46.2 percent increase compared to H1 2014, and the highest transaction value targeting the region on Mergermarket record.

What's driving this increased M&A momentum? Companies are faced with a growing pressure to provide their customers with packages that combine multiple needs, quickly, cheaply and on demand.

As a result, there has been a growing tendency for cross-investments between Technology and Telecommunications companies, which led to 30 deals worth $108.1 billion between both sectors in H1 2015.

According to the Mergermarket assessment, Technology ($114.6 billion) and Telecommunications ($119.3 billion) collectively made up 98.1 percent of the activity, with the media segment contributing only a fraction to the sector size.

Popular posts from this blog

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic