“Scope deals have accounted for almost 90% of technology deals so far in 2019, up from only 50% four years earlier — a clear sign that tech companies are looking to expand their lines of business and their own capabilities.”
via Bain & Company
According to the ‘Global Capital Confidence Barometer’, the use of technology, automation and AI for some routine processes is increasing as labor becomes scarcer and the battle for talent intensifies. This could enable companies to free up valuable resources to focus on broader strategic issues.
Global M&A value dipped lower in November as dealmakers cope with unsteady political conditions and falling asset prices. However, despite the year-over-year drop in monthly deal value, the year-to-date total for 2018 — $3.3 trillion — has exceeded the amounts seen in each of the last two years.
Overall Internet of Things (IoT) funding has stabilized. The last 12 months saw $3.3 billion in total recorded IoT investments. At the same time, successful exits are increasing. The total number of acquisitions or exits saw a new record during the second quarter of 2018 (27 in total).
via IoT Analytics
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 Mergermarket.
Overall, global TMT activity was up 87.1 percent in value in Q1 2018 to $134 billion worth of deals compared to $71.6 billion announced in Q1 2017. However, deal count fell by 20 transactions — from 815 deals in Q1 2017 to 795 in Q1 2018 — continuing a downward trend over the last three quarters.
In 2017, global dealmaking in the TMT sector saw 3,389 deals worth a combined $498.2 billion. Although total deal value fell 26.3 percent compared to the $ 676.3 billion tallied in 2016, a new Mergermarket record by deal count was set, increasing by 233 transactions over 2016 (3,156 deals) to reach an all-time high.
In the first half of the year, despite a solid economy with low inflation, low unemployment, and plenty of highly-anticipated innovations underway, the TMT sector recorded 1,482 M&A transactions globally worth a total of $175.9 billion.
Source: Digital Lifescapes
Games M&A reached a record $18.6 billion in the first half of the year, in a clear sign of late stage market consolidation. After last year’s games market saw deals drop by 81%, the first half of 2016 is up by nearly 1,000% when compared to the rate of deals in 2015.
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.
Source: Digital Lifescapes