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Cloud acquisitions drive M&A deal activity in TMT sector in Q2 2022 as deal value rises by 15%, says GlobalData
July 2022 by GlobalData
Amid rising competitive pressures and economic uncertainty, companies are turning towards cloud technology to stay ahead, according to GlobalData. The leading data and analytics company notes that the cloud market will see the most deal activity out of all tracked themes in 2022 and beyond.
GlobalData’s Thematic Research team analyses the most disruptive themes—from ‘Artificial Intelligence’ to the ‘Future of Work’—across 18 industry sectors*. Its latest report, ‘Thematic Research: Global M&A Deals in Q2 2022 - Top Themes by Sector’, reveals that the technology, media and telecoms (TMT) sector saw a total of 2,717 merger and acquisition (M&A) deals recorded in Q2 2022, collectively worth $299 billion. Deal value in the TMT sector grew 15%. The number of total M&A deals was largely driven by cloud technology, as well as ‘digital media’, which encompasses media firms that develop, produce, and distribute multimedia content on TV, in print, and online. Television networks, cable TV providers, production studios, and social media companies are all in this subsector.
Snigdha Parida, Analyst on the Thematic Research team at GlobalData, comments: “Cloud and digital media are two of the most prominent themes in the TMT industry every year when it comes to M&As. With increasing digital content and a shift in consumption patterns due to COVID-19, media brands are teaming up to combine their assets and strengthen their position to adapt to the trend. M&A activity in the cloud space continues to accelerate, and GlobalData expects to witness more deal activity in this theme over the rest of 2022.”
Looking more broadly, GlobalData’s report highlights that the value of M&A deals grew strongly (23%) in Q2 2022, compared to Q1 2022. However, M&A deal volume continued to decline (-11%).
Parida continues: “The global M&A market weakened in the first quarter, with Q1 2022’s M&A deal value dropping lower than every quarter in 2021. However, M&A deal value surged in Q2 2022 thanks to a number of high-value deals, including the $69 billion acquisition of VMware by Broadcom; the $58.5 billion merger agreement between HDFC corp and HDFC bank; and Philip Morris International acquiring more than 90% of Swedish Match for $17.3 billion.
* GlobalData tracks sectors: aerospace, defense, & security; apparel; automotive; banking & payments; construction; consumer; foodservice; healthcare; insurance; medical devices; mining; oil & gas; packaging; pharma; power; retail; technology; media & telecoms; and travel & tourism
