Blog Author

Joe Anto

E: janto@pcecompanies.com

Follow me: LinkedIn

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

Contacts

Joe Anto

New York Office

407-621-2141 |

Read More

Eric Zaleski

Chicago Office

847-239-2466 |

Read More

Jon Gogolak

Orlando Office

407-621-2136 |

Read More

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
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Larson, B. “Digital Advertising Regulation in 2024: What Marketers Need to Know.” Basis Technologies, 28 May, 2024.
  2. 2. PricewaterhouseCoopers. “Technology: US Deals 2024 midyear outlook.” PricewaterhouseCoopers, 30 April, 2024.
  3. 3. Fidler, T. “M&A in Telecommunications: Making the Right Selective Bets in a Tough Environment.” Bain & Company, 30 January, 2024.
  4. 4. The Drum Team. “From M&A buzz to market health – the analyst’s take on Cannes Lions 2024.” The Drum, 28 June, 2024.
  5. 5. Shields, R. Ad tech’s movers and shakers are readying a resurgence of M&A activity.” DIGIDAY, 4 April, 2024.
RELATED RESOURCE
RELATED RESOURCE

Keys to Selling Your Digital Agency

Read now
contact usan image