Posted by Hyderabad: M&A deals in TMT (Technology, Media & Telecom space) worth $295 billion dominated the overall markets globally in 2021.
More than 38,800 merger and acquisition (M&A) deals worth $3.8 trillion were signed last year. Among them the number of M&A deals valued at over $1 billion touched 825 – a 62% jump in 2021 compared to 2020, according to GlobalData’s latest report.
While M&A deals in TMT worth $295 billion topped in terms of value among all the M&A deals in 2021. Interestingly, the themes of AI and digital media largely dominated deals in the TMT segment around the world.
At the second spot was Banking and Payments segment with deals worth $128 billion largely driven by Blockchain and fintech themes.
When it comes to M&As, according to GlobalData’s Practice Head of Thematic Research, Sapana Maheria, the motto seemed to be ‘go big or go home’ for 2021, with total deal volume jumping up 38% year-on-year (YoY).
“This healthy growth was to be expected following COVID-19, which left organizations realizing they need to digitize to stay relevant and meet the needs of a flexible-work workforce,” said Maheria.
“Increased demand for remote working, home deliveries, automation, online streaming and digital payments increased the relevance of technology themes such as AI, ecommerce, fintech, healthtech, and digital media,” she added.
GlobalData’s latest report ‘Global M&A Deals in 2021 – Top Themes by Sector’ revealed that technology, media, and telecom (TMT) continued to be the biggest sector in terms of both M&A deal value and volume.
A total of 12,585 M&A deals in TMT worth $1.27 trillion were recorded in 2021. However, it was the automotive and healthcare sectors that witnessed the highest growth in year-on-year (YoY) deal value in 2021, at 108% and 94%, respectively.
“Across the industry, automakers and suppliers are announcing bold strategies to pivot away from producing combustion vehicles and toward electric models. This has seen many companies race to secure vital supplies of batteries, EV components, and the raw materials needed to create them,” pointed out Maheria.
While M&A deals in TMT dominated globally in 2021, there were some notable deals in ESG (Environmental, Social & Governance space) too according to Maheria.
“Themes such as ESG also gained traction, with many large deals announced—the Veolia and Suez merger worth $23 billion in the power sector; KKR’s acquisition of ERM for $2.9 billion; or Lucid Motors merging with Churchill Capital, a special purpose acquisition company (SPAC), in a $4.6 billion deal,” cited Maheria.
“This is only set to continue, with 65% of respondents to a GlobalData survey noting that ESG it is ‘very important’ to business decisions,” concluded Maheria.