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Joe Anto

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Industry Trends

TMT Faces Challenges in 2025

Deloitte forecasts 2025 as a “gap year” for generative AI and the broader TMT sector, highlighting challenges like under-realized monetization, sustainability for data center energy, and disparities in gen AI adoption (including a widening gender usage gap). Additional hurdles range from curbing deepfake threats to reigning in spiraling cloud costs. For TMT companies, bridging these gaps can spur more efficient infrastructure, bolster trust, and foster inclusive innovation—key factors in redefining tomorrow’s competitive landscape.1

Verizon’s Frontier Acquisition

Frontier’s stockholders overwhelmingly approved Verizon’s $20 billion cash offer, with roughly 63% of shareholders voting in favor of the merger. The agreement, announced in September 2024, is expected to close by early 2026, pending regulatory sign-offs. This merger signals continued consolidation in the TMT sector's fiber broadband market, expanding Verizon's reach as the largest pure-play fiber provider to offer faster and broader nationwide connectivity.2

Omnicom's $13B Acquisition of IPG Reshapes Advertising Industry

Omnicom Group is set to acquire Interpublic Group (IPG) in a deal valued at over $13 billion, creating a combined workforce exceeding 100,000 employees across various marketing disciplines. The merger aims to achieve $750 million in annual cost savings and develop a comprehensive identity solution to enhance consumer behavior insights. Subject to regulatory and shareholder approvals, the acquisition is expected to close in the second half of 2025.3

AI, Security, and Agile Innovation in Tech

Expecting an ever-faster pace of innovation, 20 executives identified pressing challenges from AI-driven cybersecurity threats and navigating machine-human collaboration to the need for flexible IT architectures. Balancing rapid releases with rigorous compliance, they emphasized leveraging generative AI, modernizing legacy systems, and upskilling AI and data analysis workforces. For the tech, media, and telecom sectors, these shifts underscore critical demand for adaptive solutions, robust governance, and future-facing tech strategy.4

TMT Sector Shines for Lenders

WhiteHorse Capital’s Mark Bernier and Peter Gallagher see extraordinary private credit opportunities in the technology, media, and telecom sectors, fueled by robust subscription-based revenues, healthy cash flows, and strong private equity interest. ARR financing is poised to power growth for software and other TMT businesses, even amid higher rates. By coupling thoughtful covenants with deep industry expertise, lenders can help these companies stay resilient, fund innovation, and propel the ongoing digital transformation that defines TMT today.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Squarespace, Inc.
  • Accel Partners; General Atlantic Service Company, L.P.; Permira Advisers LLC
  • $7,628.31
  • PowerSchool Holdings, Inc.
  • Onex Corporation; Vista Equity Partners Management, LLC; Bain Capital Private Equity, LP; Onex Partners Manager LP
  • $5,420.80
  • Instructure Holdings, Inc.
  • KKR & Co. Inc.; Dragoneer Investment Group, LLC
  • $4,864.43
  • Envestnet, Inc.
  • Franklin Resources, Inc.; BlackRock, Inc.; State Street Global Advisors, Inc.; Bain Capital Private Equity, LP; Reverence Capital Partners, L.P.; FMR LLC
  • $4,407.65
  • Exclusive Rights To Lease, Operate and Manage 6,339 Wireless Communications Towers Across US
  • Vertical Bridge REIT, LLC
  • $3,300.00
  • Commercial and Residential Fire Business of Carrier Global Corporation
  • Lone Star Americas Acquisitions, Inc.
  • $3,000.00
  • Perficient, Inc.
  • EQT Private Capital Asia
  • $2,877.57
  • Recorded Future, Inc.
  • Mastercard Incorporated
  • $2,650.00
  • Consolidated Communications Holdings, Inc.
  • British Columbia Investment Management Corporation; Searchlight Capital Partners, L.P.
  • $2,547.66
  • OwnCompany Inc.
  • Salesforce, Inc.
  • $1,900.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Transact Campus, Inc.
  • The CBORD Group, Inc.
  • $1,600.00
  • Venafi, Inc.
  • CyberArk Software Ltd.
  • $1,562.88
  • WorkForce Software, LLC
  • Automatic Data Processing, Inc.
  • $1,200.00
  • novel labs, Inc.
  • Progress Software Corporation
  • $875.00
  • Certain U.S. solar manufacturing assets of Trina Solar (Schweiz) AG
  • FREYR Battery, Inc.
  • $581.21
  • Fiery, LLC
  • Seiko Epson Corporation
  • $568.70
  • Dazz, Inc.
  • Wiz, Inc.
  • $450.00
  • B2B Computer Products, LLC
  • Xerox Corporation
  • $400.00
  • Tock LLC
  • American Express Travel Related Services Company, Inc.
  • $400.00
  • Dedrone Holdings, Inc.
  • Axon Enterprise, Inc. 
  • $400.00

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • CBTS LLC/CBTS Extended Territories LLC
  • TowerBrook Capital Partners L.P.
  • $670.00
  • Thoughtworks Holding, Inc.
  • Apax Partners LLP; Turing EquityCo II L.P.
  • $642.04
  • First Connect Insurance Services, LLC
  • Cross Creek Advisors, LLC; Centana Growth Partners, LP; Cota Capital Management LLC; PruVen Capital
  • $60.00
  • GSE Systems, Inc.
  • Pelican Energy Partners LP
  • $18.13
  • AppViewX, Inc.
  • Haveli Investment Management LLC
  • n/a

 

Source S&P Capital IQ as of 1/21/2025 and PCE Proprietary Data

PCE Transactions

Contacts

Joe Anto

New York Office

407-621-2141 |

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Eric Zaleski

Chicago Office

847-239-2466 |

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Jon Gogolak

Orlando Office

407-621-2136 |

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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. Bucaille, A. “TMT Predictions 2025: Bridging the gaps.” Deloitte, 19 November, 2024.
  2. 2. Murray, C. “Frontier Stockholders Approve Acquisition by Verizon.” Investor Frontier, 13 November, 2024.
  3. 3. Adams, P. “Omnicom acquires IPG to create advertising agency behemoth.” Marketing Dive, 9 December, 2024.
  4. 4. Forbes Councils Member. “Tech In 2025: Industry Leaders Detail Their Top Challenges.” Forbes, 3 December, 2024.
  5. 5. Middle Market Growth. “What’s Drawing Private Credit to the TMT Sector.” Middle Market Growth, 4 October, 2024.
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