Down but not out: Q3’22 M&A trends in technology, media, and telecom

The gathering clouds over the economy directly impacted the TMT M&A market in Q3’22, with deal activity decelerating further. Compared to the previous quarter, deal volume fell 20.7 percent to 1,410 from 1,778, and deal value dropped 71.8 percent to $77.6 billion from $275.4 billion.

Technology transactions slid 18.6 percent by volume and 65.6 percent by value from Q2’22. Media deals decreased 23.3 percent by volume and 95.9 percent by value. However, telecom deals broke this double-negative trend: although volume tumbled 34.8 percent, value rose 19.8 percent.

Some notable trends in Q3’22 included:

• Only one transaction topped $10 billion—Adobe’s announcement in September to take over Figma for $20 billion.
• Many private-equity (PE) firms are targeting companies with falling valuations or in need of a business turnaround for take-private transactions.
• Transactions in special-purpose acquisition companies (SPACs) continued to dry up.

M&A trends in TMT are expected to follow economic developments—with activity likely to remain subdued until investors see signs of accelerating growth. But even in a downturn, forward-looking companies can look for attractive assets and use M&A to lay the groundwork for long-term growth.

For the latest market trends and KPMG deal professionals’ view of what may lie ahead, download our full Q3’22.