Skip to main content

Technology, Media and Telecom 2018 M&A Deal Update

As more companies use technology innovation to improve their scale, automation and robotics continue to generate interest among investors. Mapping and software development have significant potential, particularly as most business leaders seek to digitize their commercial operations.

This trend will continue for some time. Consulting on the various types of new technology tools will also likely be an area to follow in the near future, according to the latest worldwide market study by Mergermarket.

Technology, Media & Telecom Market Development

Moreover, emerging applications for artificial intelligence (AI) are in vogue, and China has emerged as a potential leader in this space, with dealmakers looking to invest in startups specializing in this area.

Until the Facebook data protection issue became public knowledge in mid-March, first-quarter (Q1) 2018 activity within the global Technology, Media & Telecommunications (TMT) sector as a whole was experiencing a boost from several large transactions.

Overall, global TMT activity was up 87.1 percent in value in Q1 2018 to $134 billion worth of deals compared to $71.6 billion announced in Q1 2017. However, deal count fell by 20 transactions -- from 815 deals in Q1 2017 to 795 in Q1 2018 -- continuing a downward trend over the last three quarters.

The largest transaction, and the only mega-deal (>$ 10 billion) of Q1 2018 was the $10.5 billion takeover of Denmark-based TDC -- a telecom company providing both traditional and digital services -- by a consortium including PKA Pension Funds, Arbejdsmarkedets Till√¶gspension, and Macquarie’s European Infrastructure and Real Assets Group.

Other notable transactions for the sector in Q1 2018 approaching mega-deal status were Microchip Technology’s $ 9.8 billion bid for Microsemi Corporation, a maker of analogue and mixed-signal integrated circuits and semiconductors, and FUJIFILM Holdings’ $8.6 billion bid for a 50.1 percent stake in Xerox Corporation.

Regionally, the U.S. market was responsible for the largest share of global TMT deal value in Q1 2018 with 40.4 percent ($54.1 billion) of market share. This figure was up from the 38.5 percent share by value that the U.S. had claimed in Q1 2017 with $27.6 billion.

Europe, meanwhile, accounted for 33.5 percent of Q1 2018’s total TMT deal value with $44.9 billion, up from a 13.7 percent market share in Q1 2017 with $9.8 billion.

Asia-Pacific was down from its 38.1 percent market share in Q1 2017 with $27.3 billion, and was responsible for 21.9 percent of total TMT deal value with $29.4 billion in Q1 2018.

Overall, Technology accounted for 62.2 percent of TMT’s total deal value with $83.4 billion, down slightly compared to 63.8 percent in Q1 2017. However, Tech’s total deal value was at the same time 82.5 percent higher than Q1 2017’s total of $45.7 billion.

Meanwhile, there were only 621 Technology transactions announced in Q1 2018, seven fewer than during the same period last year.  The Media and Telecommunications segments were on par with each other in the first quarter of the year, reaching just over $25 billion each, though the former recorded 141 transactions while Telecom recorded 33.

Outlook for TMT Global Market Growth

According to the Mergermarket assessment, with anxiety surrounding the culpability and responsibility of the hyperscale web technology firms -- such as Facebook and Google -- now under scrutiny, the rest of the year remains somewhat uncertain. Therefore, we'll have to wait and see how the TMT market evolves.

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