2021 and H1/2022 saw an accelerated rate of merger and acquisition (M&A) activity in the technology, media and telecommunications (TMT) sector. TMT continues to be an out-performer and this isn’t expected to change any time soon. A look at Mergermarket’s published “company for sale” stories show the sector is way out in front in terms of potential deals in the making1.
The TMT sector was the most active globally in 2021 - in both deal value and volume terms.
Source: White & Case 2022
In Aon’s recent Risk in Review survey, almost three-quarters of respondents (70%), by far the largest share, cite technology, media & telecoms (TMT) as the most prolific sector in terms of expected dealmaking over the next 12 months.
M&A is Driving Growth
The digital revolution continues to gather momentum. Multiple industries are becoming increasingly reliant on technology, driving an uptick in M&A activity across the TMT sector. The appetite from private equity investors is growing at a rapid pace as organizations seek to remain competitive and find new ways to enhance their core capabilities - while seizing opportunities for growth. Meanwhile, global M&A activity remains very significant, with investments triggered by initial public offerings (IPOs) and venture capital (VC) funding.
The current deal appetite reflects the growth potential in an increasingly virtual world. Next-generation innovations have prompted a surge of opportunities, supported by an increase in new investments across the entire digital infrastructure.