Digital Lifescapes

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 transa...

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 ...

Semiconductors are the heart of information technology and telecommunications systems. Worldwide semiconductor revenue totaled $343.5 billion in 2016 -- that's a 2.6 percent increase from 2015 revenue of $334.9 billion, according to the latest global market study by Gartner. The top 25 semiconductor vendors' combined revenue increased 10.5 percent, a significantly better performance than the overall industry's growth. However, most of the reported growth resulted from vendor merger and acquisition (M&A) activity. Semiconductor Sector Market Development "The semiconductor industry rebounded in 2016, with a weak start to the year, characterized by inventory correction, giving way to strengthening demand and an improving pricing environment in the second half," said James Hines research director at Gartner . Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pric...

Technology, Media & Telecommunications (TMT) mergers and acquisitions (M&A) activity has improved in 2016, with deal value experiencing two consecutive quarterly increases, according to the latest worldwide market study by Mergermarket . Case in point: during the third quarter (Q3) of 2016, a reported 666 deals worth $179.6 billion represented a 39 percent climb in value -- that's compared to Q3 2015 (828 deals, $128.8 billion). With year-to-date activity (2,168 deals, $403.1 billion) still 21 percent lower by value when compared to the Q1-Q3 2015 period (2,410 deals, $510.2 billion), a re-balancing effect following the 2015 record high is still impacting the market. Why Market Development Gained Momentum Furthermore, according to the Mergermarket assessment, Q3 2016 strength demonstrates that some M&A deals put on-hold at the beginning of the year -- due to uncertainties about the UK Brexit referendum and the British and American central bank interest rate poli...

The Technology, Media and Telecommunications (TMT) sector has experienced a re-balancing compared to the record M&A activity seen in 2015, according to the latest global market study by Mergermarket . During the first half (H1) of 2016, 1,363 deals worth $223.1 billion represented a 41.6 percent decrease in value compared to H1 2015 ($382.3 billion, 1,580 deals), and the weakest H1 deal value and count since 2013 ($173.5 billion, 1,056 deals). Reflecting this low activity, no mega-deals (< $10 billion) took place within the Technology, Media and Telecommunications sector during H1 2016, compared to a record nine during the same period in 2015, with the highest recorded deal of H1 -- Chinese Internet giant Tencent Holding's acquisition of Finland's online gaming editor Supercell -- valued at $8.6 billion. TMT Market Development Results Following a succession of high valued deals seen over the past few years, Telecommunications M&A seems to be feeling the e...

According to 451 Research, the leading acquirers will spend hundreds of billions of dollars to buy innovative technology companies in the coming year. They're reacting to the rapidly changing marketplace, where information security and the Internet of Things (IoT) are the focus for major new investments. Two key trends will drive much of the action in software M&A activity -- the movement of business applications and IT infrastructure to hybrid cloud-based service models, plus the need for new data management capabilities to address the growing demand on IT resources anticipated from IoT. Furthermore, the digital transformation and big data analytics sectors will also drive M&A activities throughout the year. The pool of likely candidates to either be acquired or have a public stock offering is significant. As an example, their forecast for the software market identified more than 90 companies as potential M&A targets in 2016, and another 13 private companies as pot...

Asian buyers increased investment within the U.S. market in 2015, particularly as the semiconductor space consolidated. According to Mergermarket intelligence, this outbound trend will continue in 2016, with the Chinese government pushing companies to upgrade technology through its "Made in China 2025" initiative. The worldwide Technology, Media and Telecommunications (TMT) market activity during 2015 reached an all-time high with 3,021 transactions valued at $768.3 billion, that's up by 46.6 percent by value compared to 2014 ($524.1B, 2,988 deals), according to the latest global study by Mergermarket . TMT mergers and acquisitions (M&A) increased its presence in global dealmaking, accounting for an 18 percent market share of total activity, up from 16 percent in 2014, and the second highest on Mergermarket record (since 2001) following 2013 (23 percent). M&A activity targeting the Technology sub-sector (2,225 deals, $421.6B), drove overall TMT value dur...

The combined Technology, Media and Telecom (TMT) sector has continued to evolve throughout this year, as ongoing consolidation results in some huge deals. Furthermore, in the near future, we could see more private equity transactions. "Entire private equity funds have formed in recent years around a tech acquisition strategy," according to Mergermarket intelligence, highlighted by a 21.2 percent increase in the value of American technology buyouts ($32.8 billion) compared to the whole of 2014. TMT market activity during the first quarter through the third quarter of 2015 has reached the second highest annual value on Mergermarket record (since 2001) with transactions valued at $534.2 billion, only beaten by 2006’s full-year total at $600.9 billion. Compared to the whole of 2014, Q1-Q3 2015 accounts for 804 fewer deals (2,168 vs. 2,972), but has already seen a $10.8 billion higher deal value (vs. $523.5 billion), according to their latest worldwide market study. The...

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 -- ex...

A new market study by Mergermarket, reveals that 84 percent of Technology, Media and Entertainment (TME) companies expect to see more cross-sector merger and acquisition (M&A) deals over the next two years. The resulting report from this study outlines the rapidly evolving M&A landscape for global TME companies. This change is being driven by an increasingly fierce battle fought by TME firms who are attempting to gain a competitive edge in the market, via convergence. In fact, 2014 saw new levels of convergence deals amounting to $34.5 billion, with this trend predicted to increase further, according to the latest worldwide assessment by the Mergermarket Group. Cross-sector convergence varies widely across the TME sectors. Entertainment businesses are the most willing to branch out, with more than 33 percent planning non-entertainment purchases. This willingness has the potential to put acquisitive businesses ahead, but they must be aware of the potential risks involved i...

The Technology, Media and Telecom ( TMT ) mergers and acquisitions (M&A) deals are off to a slow start this year, according to the latest worldwide market study by Mergermarket . Market activity so far in 2015 was not able to match the performance of 2014. Case in point: the 612 M&A deals worth $144.3 billion in Q1 2015 were a 20.5 percent decrease by value and 61 fewer deals, when compared to the 673 deals valued at $181.5 billion in Q1 2014. Although global M&A activity share for the TMT sector has fallen from the 28.6 percent share in Q1 2014 to a 19.2 percent share in Q1 2015, the consolidated sector has still been the strongest globally, closely followed by the Consumer industry with $143.2 billion. Regional TMT M&A Market Trends European TMT targets, with a total of M&A activity valued at $61 billion, experienced a 33.1 percent increase over the $45.8 billion in Q1 2014 -- representing the highest Q1 value on Mergermarket record, and constituting 42.3 ...

Many silicon valley venture capital firms would prefer to forget the epic dot-com bubble that lasted from 1997 to 2000. But who can forget their naive rush to invest in some of the most absurd Web 2.0 start-ups and silly Social Media companies? It was truly unprecedented. Granted, the people who would most like to erase those memories are the senior executives at large corporations who helped to orchestrate the acquisition of a dot-com flop, at ridiculous market evaluations, then close the failed business within a year to eighteen months of the purchase. That fiasco would never happen again. Or, could it? Technology-related mergers and acquisitions (M&A) spending in 2015 is likely to continue at the record pace that was set last year, according to the latest market study by 451 Research. Bullish sentiment from corporate acquirers and bankers, combined with an optimistic macro-economic environment and a re-energized private equity market, is fueling the current M&A outlook...

According to the latest market study by 451 Research, a variety of acquirers increased their mergers and acquisitions (M&A) activity within the Internet of Things (IoT) marketplace during 2014, spending a combined $14.3 billion to acquire 60 companies. By comparison, that spending is almost eight-times the total spent by acquirers prior to 2014 -- representing a forty-fold increase over 2013. Meanwhile, the ongoing interest in the IoT-related venture capital investment market is likely to blossom during 2015. The number of corporate M&A deals increased more than twofold, with companies such as Google, Samsung, Cisco, Intel, PTC, Qualcomm and others increasing their effort to position IoT as a key contributor to business growth strategy. 451 Reserach analysts believe that the sharp rise in deal-making activity in 2014 suggests that market forces surrounding IoT have become sufficiently compelling, which has simulated major IT vendor action. "Acquirers don’t want...