Corporate finance

A review of recent technology, media and telecoms deals

Andy Morgan Andy Morgan

The technology, media and telecommunications sectors continue to evolve, and valuations are rising with demand for these businesses heading in the same direction.

International interest continues despite high valuations

Technology, media and telecommunications remains one of the hottest sectors for M&A activity. Software – whether subscription or traditional licence models – continues as the bedrock of deal activity. The private equity community on both sides of the Atlantic and international trade consolidators will continue to benefit from the current weakness in sterling. With a clear premium for scale and quality, valuations have reached heady levels but we expect activity will remain high throughout 2017.

Fintech driving M&A activity in London

The fintech revolution continues apace with the UK, particularly London, staking a major global leadership claim. This ever-evolving space is proving to be the biggest disruption to the financial services industry since Big Bang in 1986.

This is driving M&A activity as financial incumbents look to acquire innovative new entrants and technology/software majors broaden their offering in financial services. As the clouds slowly lift around the Brexit implications, we can expect fintech to be a key battleground for M&A.

Digital evolution driving a ‘new-age’ delivery of services

As scale and focus become even more important, we are seeing increased activity levels in the IT Services and BPO arena. Meanwhile, the ever-accelerating move to the cloud continues to drive the worlds of telecoms and IT closer together through M&A. The drive into digital is transforming the delivery of services and underpins deal activity in the media sector.

Download our latest ‘Leading the way’ technology, media and telecoms brochure to see the deals we recently advised on.

For more information on corporate finance services in the technology, media and telecommunications sector contact Andy Morgan.