Skip to main content

Technology, Media and Telecom 2017 M&A Deal Update

U.S. West Coast technology companies are expected to remain the driving targets for M&A transactions in the TMT sector. Bidders are likely to come from American firms across the country, plus from Europe, Asia, and Canada.

Though a return to huge mega-mergers are not anticipated this year, given the continued uncertainty in the political environment, software companies are still heavily sought-after assets, with deal volume expected to gain new momentum.

Moreover, growing concern about cyberattacks led to an increase in interest for cybersecurity companies, with the potential for more M&A in the security technology sector. Concerns over state sponsored internet-based hacking have motivated governments across the globe to develop digital defense strategies.

Furthermore, corporate data attacks via ransomware have caused a great deal of anxiety in the information technology arena. That being said, digital transformation innovations will likely continue to disrupt markets and reinvent numerous business sectors throughout the year.

Ongoing innovation within the manufacturing, robotics and artificial intelligence industries are also likely to transform several additional commercial sectors, such as construction and defense.

Technology, Media and Telecom Market Assessment

Mergermarket (now part of Acuris) has released its global mergers and acquisitions (M&A) roundup report for the Technology, Media and Telecommunications (TMT) Sector for the first half (H1) of 2017.

Key findings from the study include:

The first half of 2017 could best be described as a departure from business as usual, with the emergence of a new world order as defined by Brexit and the Trump presidency.

These structural changes across the globe have begun to break down and reshape not only traditional political identities, but also long-standing industries, to a growing degree brought on by the prevalence of technology in our daily lives.

As advances in artificial intelligence, robotics, and autonomous vehicles, among other areas, become increasingly undeniable realities, giving rise to economic anxiety for some, the world of tomorrow now seems closer than ever.

According to the findings from their latest market assessment, some of this has already made itself evident in the TMT dealmaking environment.

In the first half of the year, despite a solid economy with low inflation, low unemployment, and plenty of highly-anticipated innovations underway, the TMT sector recorded 1,482 M&A transactions globally worth a total of $175.9 billion.

That's a 20.9 percent value drop with 84 fewer deals compared to H1 2016 ($222.3 billion, 1,566 deals), leading TMT to rank as the fourth sector globally by value.

By deal count, however, TMT saw the second highest number of deals after Energy, Mining & Utilities, boosted by the Computer Software sub-sector. Of total M&A activity globally, Software recorded 747 deals worth a total of $62.6 billion, and was responsible for 50.4 percent of TMT’s overall deal count in H1 2017 while accounting for 35.6 percent of the sector’s total value.

With its burgeoning imprint on such long-standing sectors as Financial Services, Industrials, and Medical, the number of Software deals is only expected to increase.

Popular posts from this blog

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth