Mergermarket 2015 TMT Trend Report Records New M&A Highs
By Christine Kern, contributing writer
Technology, media, and telecom all saw record high M&A activity in 2015
Mergermarket, a business development tool designed specifically for the M&A sector, has released its Global M&A roundup report for the Technology, Media, and Telecom (TMT) Sector for 2015. The TMT Trend Report found that global TMT activity during 2015 reached an all-time high, up 46.6 percent by value compared to 2014 levels.
2015 saw a total of 3,021 TMT transactions valued at $768.2 billion. TMT M&A increased its presence in global deal-making, 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 at 23 percent.
The report also found that M&A activity targeting the Technology sub-sector drove overall TMT value during 2015, increasing 88 percent over 2014 to reach both its highest deal value and count on Mergermarket record. The activity represented 2,225 deals worth $421.6 billion. The U.S. was the most targeted country for Technology M&A activity, attracting $249.4 billion in deals, an increase of 92.1 percent over 2014 levels.
Further, with 196 deals valued at $259.3 billion, the Telecommunications sub-sector achieved its highest annual value on record, a 5.8 percent increase by value compared to 2014 ($223.9 billion, 194 deals), and 2.1 percent above 2013’s previous record ($254 billion, 239 deals).
Media also reached its highest annual value since 2007, highlighting a spread of interest in deals throughout the TMT sector with 600 deals with a worth of $87.4 billion.
The report also stated, “M&A targeting the TMT sector has experienced a shift from cross-border to domestic activity in recent years,” representing $451.2 billion worth of domestic transactions within regions comprising 59 percent of total sector deal value, up 64.1 percent over 2014. The main driver behind this trend was the boom in domestic activity within the Asia-Pacific region.
M&A activity was also “accentuated by non-TMT investors targeting the U.S. Tech sector, reaching $139.9 billion worth of deals, the highest annual value on record, up 60 percent compared to the previous record in 2006 ($87.3 billion).”
The report anticipates the “golden age of TMT M&A” will continue into 2016, driven especially by U.S. activity as companies seek to expand into new markets.