Adapting to the shift from headwinds to tailwinds: Q4'24 M&A trends in TMT
AI innovations and favorable deregulation increased TMT sector M&A activity, positioning it for strategic alignments and continued growth.
The fourth quarter of 2024 marked a significant period for the technology, media, and telecom (TMT) sectors. Despite economic challenges such as inflation and market fluctuations, the M&A landscape showed promising growth and resilience. 2024 showcased a divergence between soaring deal values and modest volume growth, indicating cautious optimism for this momentum going into 2025.
Pro-business policies of the new administration are expected to further enhance the M&A climate. Deregulation, a focused approach on energy, AI advancements, and advantageous incentives for investment are anticipated to create a dynamic and supportive environment. Narrowing valuation gaps between buyers and sellers, and increasing private equity firm exits will also contribute positively to the TMT M&A landscape.
Key trends and insights from the fourth quarter:
- TMT sectors experienced substantial growth in deal value, up by 66.8 percent to $437.6 billion, while deal volume saw an 8.2 percent rise with 5,907 deals.
- Despite a 5.1 percent decrease in deal volume, the telecommunications subsector saw a significant 53.2 percent increase in deal values.
- Private equity firms conducted 68 percent of the deals by volume in 2024, with strategic buyers taking the lead in high-value transactions, accounting for 56 percent.
- Major deals included Synopsys acquiring ANSYS for $35 billion, and Verizon’s acquisition of Frontier Communications for $20 billion.
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Adapting to the shift from headwinds to tailwinds
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