Insight

Global TMT M&A Newsletter Q3 2020

KPMG Corporate Finance LLC’s Q3 TMT update

Mihir Jobalia

Mihir Jobalia

Managing Director, KPMG Corporate Finance LLC

+1 408-582-3369

John Paul Ditty

John Paul Ditty

Managing Director, KPMG Corporate Finance LLC

+1 562-673-3967

TMT M&A Activity Rebounds Sharply Going Into Q4’20

In Q3'20, global TMT M&A activity witnessed a substantial rebound from Q2’20, resulting in a 34% increase in deal volume (1,050 transactions) and 5.8x in aggregate deal value ($203B). Additionally, Q3'20 witnessed the strongest start to the second half of the year since 2014 as public companies and private equity groups are under pressure to put cash rich balance sheets and record trillion dollar dry powder to work.

Technology Strategics Continue to be Active in M&A

Q3'20 was a quarter dominated by $1B+ deals with ~30 deals (3% of all Q3’20 deals) worth ~$180B (90% of Q3’20 aggregate deal value), surpassing the highest quarterly aggregate deal value recorded in the last 26 quarters.

Key TMT Market Trends

COVID-19 is Accelerating Digital Transformation

Organizations across all industries and sizes have experienced varying degrees of disruption from COVID-19, resulting in a surge in demand for certain technologies that empower employees to be productive and secure anywhere, on any network, any device, at any time.

"2 years of digital transformation in 2 months" - Satya Nadella, CEO Microsoft


 

As more businesses prepare for long-term WFH policies…

… 70% businesses project an increase in their IT budget for growth…

… directed towards transformative technologies


 


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