Mergers & Acquisitions in Technology, Media, and Telecom - Review of H1 2020

Mergers & Acquisitions in Technology, Media, and Telecom - Review of H1 2020

Summary

If you want to understand the themes that drive an industry, simply look at the list of recent mergers and acquisitions (M&A). This report analyzes the disruptive themes that have driven M&A activity across the technology, media, and telecoms (TMT) industry in the first six months of 2020. It also includes an assessment of the impact of COVID-19 on M&A activity.

In the first half of 2020, 253 M&A deals with a transaction value of $50m or more were announced in the technology, media, and telecom (TMT) sector, down 40% on H1 2019. The combined transaction value for the first six months of 2020 was $216.6bn, a drop of 24% from $285bn in H2 2019, and 51% down on the same period last year.

Scope

  • This report provides an overview of merger and acquisition activity in the global TMT market in the first six months of 2020.
  • It assesses the impact of COVID-19 on the M&A market
  • It identifies the M&A deals announced in the TMT market between 1 January and 30 June 2020 and provides comprehensive sector-by-sector analysis of the themes driving this activity.
Reasons to Buy
  • This report offers a unique perspective on M&A activity in the TMT sector by focusing on the themes driving deals.
  • This allows for a deeper understanding of the themes that are shaping the industry. In addition, it provides fresh insight into the impact of the COVID-19 pandemic on M&As, including analysis of proposed deals that have been postponed due to the pandemic.


SUMMARY
COVID-19 depresseddeal activity by 40% in H1 2020
Connectivity,fintech,and cloud were the top themes driving M&A
TABLE OF CONTENTS
List of Tables
List of Figures
TMT M&A MARKET: REVIEW OF H1 2020
M&A activity in the global TMT sector has been trending down over the last 18 months
However, since April 2020, deal volumes have started to rise again
The number of billion-dollar deals has been in gradual decline over the last six months
Softwareand servicesdeals dominated the TMT M&A market in H1 2020
US-based acquirers accounted for 39% of the deals announced in H1 2020
COVID-19 IMPACT ON THE TMT M&A MARKET
Four out of the six deal terminations in H1 2020 were caused byCOVID-19
In the medium term, the market correction could create attractive M&A opportunities
TOP THEMES DRIVING THE TMT M&A MARKET
Connectivity, fintech, and cloud were the top three themes driving M&AsinH1 2020
By contrast, social media and IoT have driven Big Tech M&A over the last six years
Hardware
Softwareand services
Internet and media
Telecom services
DEAL SELECTION
GLOSSARY
APPENDIX: OUR THEMATIC RESEARCH METHODOLOGY
Viewing the world’s data by themes makes it easier to make important decisions
Traditional research does a poor job of picking winners and losers
That is why we developed our “thematic engine”
How do we create our sector scorecards?
What is in our sector scorecards?
How do we score companies in our thematic screen?
How our research reports fit into our overall thematic research ecosystem
About GlobalData
Contact us
Research
Client Services
Disclaimer
List of Tables
Table 1: Four out of the six deal terminations in H1 2020 were caused byCOVID-19
Table 2: Glossary
List of Figures
Figure 1: M&A deal activity in the global TMT sector
Figure 2: M&A activity in the TMT industry dropped significantly in H1 2020
Figure 3: InApril 2020, the number of TMT M&A transactions fell to just 26
Figure 4: In Q2 2020, there were 22 billion-dollar M&A deals involving TMT companies
Figure 5: The software and services sectoraccounted for 52% of M&A deal value in H1 2020
Figure 6: US companies made more acquisitions in H1 2020 than European and Asia-Pacific firmscombined
Figure 7: Traditional advertising and music, film, and TV are the worst hit sectors due to COVID-19
Figure 8: Connectivity, fintech, and cloudwere the top threethemes driving M&AsinH1 2020
Figure 9: Social media and IoT are the primary themes driving GAFAM’s M&A strategy since 2014
Figure 10: Since the beginning of 2014, GAFAM have acquired 17 companies worth $1bn or more
Figure 11: M&A activity in the global hardware sector in H1 2020
Figure 12: M&A activity in the global software and services sector in H1 2020
Figure 13: M&A activity in the global softwareand services sector in H1 2020 (continued)
Figure 14: M&A activity in the global internet and media sector in H1 2020
Figure 15: M&A activity in the global telecom services sector in H1 2020
Figure 16: M&A transaction value by TMT sector, H1 2020
Figure 17: Our five-step approach for generating a sector scorecard

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