Industry Trends
Utah Legislation Provides New Opportunity
The enactment of new data privacy laws, including legislation in Utah, marks a pivotal shift in the Tech Media & Telecom sector towards stricter regulation. Utah Senator Mike Lee's proposed bill would require large companies like Google, Meta, and Amazon to spin off parts of their digital advertising businesses, fostering transparency and competition. This move will drive innovation and reshape the competitive landscape of the Tech Media & Telecom industry.1
Tech Mergers and Software Consolidation
PWC’s 2024 midyear outlook for technology deals highlights the AI revolution's transformative impact on the Tech Media & Telecom sector. Significant deals, like Synopsys' proposed $35 billion acquisition of Ansys, underscore the growing emphasis on integrating AI with software design and simulation technologies. With many private software companies aiming to go public in 2025, software consolidation rises as a key trend as firms acquire complementary products to enhance platforms, stave off competition, and increase market share.2
Focus on Fiber, Enterprise Services, and Data Centers
The TMT sector's M&A focus is expected to intensify in fiber networks and enterprise services, with data centers emerging as a key segment due to surging data demand and technological advances. The trend of significant acquisitions, like Brookfield's $5.7 billion purchase of Compass Datacenters, emphasizes an increased interest in these subsectors. This dynamic points to a strategic shift in the TMT M&A landscape, where targeted consolidation and investment in high-demand areas are paramount.3
Cannes Lions 2024: Strategic Insights for Tech, Media, and Telecom
At Cannes Lions 2024, Matt Bloxham from Bloomberg Intelligence noted an uptick in business activity, with a strong focus on deal-making and sales development. Major players like Stagwell and Publicis made significant impressions with innovative plans for the industry. The potential for substantial M&A activity, particularly in ad tech, was a key theme, driven by the need for consolidation to enhance technology capabilities and sustain growth amidst evolving market conditions.4
Revitalizing Ad Tech: M&A Surge Signals New Growth
Cadent’s $324 million acquisition of AdTheorent highlights a resurgence in ad tech mergers and acquisitions, echoed by LiveRamp’s $200 million acquisition of Habu. This renewed M&A activity is fueled by substantial cash reserves in public companies and stable borrowing costs, creating a favorable environment for strategic deals. Representing the ad tech industry's trend towards consolidation to adapt to evolving market demands, enhance service capabilities, and drive sustainable growth.5
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
- Global Access Solutions
- Honeywell International Inc.
- $4,950.00
- Model N, Inc.
- Vista Equity Partners Management, LLC
- $1,495.09
- Kaena Corporation
- T-Mobile US, Inc.
- $1,350.00
- Jackpocket, Inc.
- DraftKings Holdings Inc.
- $758.05
- The Gearbox Entertainment Company, Inc.
- Take-Two Interactive Software, Inc.
- $454.34
- Noname Gate, Inc.
- Akamai Technologies, Inc.
- $450.00
Other Financial Buyer Transactions Closed
- Target
- Buyer
- Value($mm)
- ZeroFox Holdings, Inc.
- Haveli Investment Management LLC
- $322.61
- Fleet Technology Business of Rubicon Technologies Inc.
- Modaxo Inc.
- $260.00
Other Strategic Buyer Transactions Closed
- Target
- Buyer
- Value($mm)
- MTL Holdings, Inc.
- Carlisle Companies Incorporated
- $410.00
- GalaxE.Solutions Inc.
- Endava plc
- $405.00
- North American Life and Annuity assets of Ebix, Inc.
- Zinnia Distributor Solutions LLC
- $400.00
- Horizon Telcom, Inc.
- Shenandoah Telecommunications Company
- $394.59
- Info Center, Inc.
- Insight Enterprises, Inc.
- $371.25
Source S&P Capital IQ as of 7/9/2024 and PCE Proprietary Data
PCE Transactions
Served as advisor to SkyCross on their fairness opinion
Served as advisor to Communications International, Inc. on their acquisition of Fatpot Technologies
Served as advisor to LMG Inc. on their acquisition of Premier Event Technology
Served as advisor to Arete Development, Inc. on their acquisition by Glotel, a portfolio company of The Gores Group
Served as advisor to Level 10 on their sale to Level 10 ESOP Trust
Contacts
Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
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