Picking up steam: Q3'24 M&A trends in TMT

The technology, media, and telecom (TMT) sector demonstrated resilience and growth in the third quarter of 2024, despite a slight dip in deal volume. The sector witnessed a significant increase in transaction value, indicating a trend toward larger deals. Megadeals in fiber broadband, data centers, and artificial intelligence infrastructure highlighted the industry's focus on digital transformation and the growing importance of advanced technologies.

With the Federal Reserve initiating a rate-cut cycle and a more stable economic outlook, dealmaker sentiment is expected to improve. The TMT sector will likely see increased M&A activity driven by the need for companies to stay competitive in the face of rapid technological advancements, particularly in areas such as artificial intelligence and cybersecurity.

Here are some key trends and insights from the third quarter:

• TMT deal value surged 10.5 percent quarter-over-quarter, reaching $134.3 billion, even as volume decreased by 6.2 percent
• Year-to-date deal value more than doubled compared to the same period in 2023
• The technology subsector led activity with 1,028 transactions worth $77.9 billion
• Strategic deals outperformed private equity, with total value increasing by 126.4 percent
• Pre-deal value diligence emerged as a crucial tool for buyers to identify high-potential assets and make informed decisions.

As we look ahead, the TMT sector is poised for continued growth and transformation. Companies that stay attuned to the evolving landscape and leverage data-driven insights will be well-positioned to seize opportunities and navigate challenges in the dynamic TMT sector.

Download our report, Picking up steam: M&A trends in technology, media, and telecom , for an in-depth analysis of the TMT sector. Learn how KPMG can help you unlock value in your M&A transactions. Our TMT-specialized teams bring both transactional and operational experience to help you achieve your goals and stay ahead of the curve.