Skip to main content

Technology, Media and Telecom 2018 M&A Trends

The Technology, Media and Telecommunications (TMT) sector has experienced numerous mergers and acquisitions (M&A) within 2018 thus far. All sub-sectors are already showing signs of upside potential as new pockets of growth fuel the Global Networked Economy.

By the end of the first half (H1) of 2018, global TMT values had reached $371.1 billion and 1,693 deals, representing a 19 percent share of global M&A. The strong results nearly surpassed H1 2015 record high of $383 billion, which represented a market share of 21 percent, according to the latest worldwide market study by Mergermarket.

TMT Deal Sub-Sector Analysis

The total deal value in the overall TMT sector also marked a 107 percent jump, when compared to figures from H1 2017 ($179.4 billion), though the deal count fell by 53 transactions (from 1,746).

Technology sub-sector accounted for the largest share of TMT’s total deal value -- 46.2 percent with $171.5 billion, while the Technology deal count of 1,329 transactions was responsible for 78.5 percent of TMT’s total volume for the period.

Telecommunications accounted for the second-largest share of deal value with $111.2 billion, or 35.1 percent of the TMT total, and 59 transactions, or 3.5 percent of volume. The sub-sector was boosted by the largest deal of the period, Sprint’s $58.9 billion bid for T-Mobile, which accounted for 53 percent of the total value.

Media, the sub-sector that was under the spotlight the most in H1 2018, registered $88.4 billion in total deal value and 305 transactions, or 27.9 percent of TMT’s total value and 18 percent of total volume.


M&A Market Segmentation

Geographically, the U.S. led in market share with $143.9 billion and 646 deals, representing a 39 percent share of global TMT value, with Europe following with $129.8 billion and 569 deals, representing a 35 percent share of total value.

Asia-Pacific, though behind both the U.S. and Europe regions in terms of market share, recorded $86.3 billion and 376 deals, representing a 23.3 percent share of total value, boosted by two mega-deals that took place in India.

Note, all data is based on transactions valued at over $5 million and is sourced from the Mergermarket M&A deals database. Deals with undisclosed deal values are included where the target’s revenue exceeds $10 million. Deals where the stake acquired is less than 30 percent will only be included if the overall value is greater than $100 million.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Securing Fintech via Mobile User Authentication

The global COVID-19 pandemic accelerated the development and adoption of online digital services, including mobile user authentication services. This led to more Fintech solutions growth at a rapid rate from 2020 to 2022, as companies started to adopt one-touch verification. These services enable CIOs and CTOs to increase the level of security offered to customers who are concerned about online financial transactions. However, there are numerous other industry use cases that require increased security measures to protect sensitive data. According to the latest worldwide market study by Juniper Research, mobile network operators will generate $27 billion from the termination of Short Message Service (SMS) related to multi-factor authentication in 2022 -- that's an increase from $25 billion in 2021. Commercial SMS Apps Market Development Juniper analysts predict this 5 percent growth will be driven by increased pressure on digital service providers to offer highly secure user authent