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

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

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