TMT Market Sees 54% Rise In Mergers & Acquisitions In 2013

Merger Market is out with its “Global Technology, Media & Telecommunications (TMT) 2013” report. Thanks to some mega deals, global mergers & acquisitions (M&A) activity in TMT sector surged a staggering 54.1% over 2012 to $510.3 billion in 2013. The technology, media and telecom industry had seen deals worth $331.1 billion in 2012.

There were 14 mega deals last year, with a deal value of more than $5 billion. The report said that the M&A value in 2013 was the highest since 2006, when more than $603 billion worth of deals took place. Unsurprisingly, Vodafone Group Plc (NASDAQ:VOD) (LON:VOD)’s sale of its 45% stake in Verizon Wireless to its majority partner was the biggest deal of the year. The $124.1 billion stake sale alone accounted for 24.3% of the total mergers & acquisitions in 2013. Without this deal, the technology, media and telecom deals would have been at $386.2 billion.

TMT mergers & acquisitions surpass energy, mining sector

2013 really seems to have been a great year for TMT mergers & acquisitions. For the first time since 2006, TMT deals surpassed the energy, mining and utility sector, which witnessed deals worth $426.7 billion. Overall, global mergers & acquisitions activity reached $2,216.4 billion in 2013. Every subsector had a healthy M&A activity, but deals were particularly strong in the telecom market ($251.9 billion), particularly due to the Verizon Wireless deal.

Up-and-Coming Small- and Mid-cap Portfolio Managers #MICUS (Morningstar Conference)

InvestorsNotes from Laird Bieger of Baron Capital, Mark Wynegar of Tributary Capital Management, and Amy Zhang of Alger Funds' presentation from the 2020 Monringstar Investment Conference. Q2 2020 hedge fund letters, conferences and more Up-and-Coming Small- and Mid-cap Portfolio Managers Our manager research team has been publishing its semiannual Morningstar Prospects report for several years. Read More

Mergers & acquisitions (M&A) in the technology market increased 22.3% to $166.3 billion. Meanwhile, media M&A deals rose 27.8% to $92.1 billion. Deals in media market were driven by European and U.S. broadcast companies that are facing intense competition from online services. North America saw a 70.4% rise in mergers and acquisitions to $301.9 billion in 2013. In contrast, TMT deals in Asia skidded 20.5% from 2012 to $57.3 billion.

SubSector deals

Top five TMT mergers & acquisitions of 2013

Vodafone Group Plc (ADR) (NASDAQ:VOD) (LON:VOD)’s stake sale in Verizon Wireless was the biggest deal of the year, and third biggest of all time with a deal value of $124.1 billion. John Malone-led Liberty Global Inc (NASDAQ:LBTYA) (NASDAQ:LBTYB)’s acquisition of Virgin Media Inc (NASDAQ:VMED) for $25 billion was the second biggest TMT deal of the year. It was followed by a $20.2 billion deal for Dell Inc. (NASDAQ:DELL), in which Michael Dell and Silver Lake Partners took the computer maker private. The fourth biggest deal of the year was the acquisition of Omnicom Group Inc. (NYSE:OMC) by Publicis Groupe SA (ADR) (OTCMKTS:PUBGY) (EPA:PUB) for $19.4 billion. In February 2013, Comcast Corporation (NASDAQ:CMCSA) purchased 49% stake in NBCUniversal Media for $16.7 billion, making it the fifth largest deal in TMT sector last year.

Top TMT Mergers & acquisitions