Global M&A value close to $1 trillion in Q3 2021 supported by TMT sector, says GlobalData

Global mergers and acquisitions (M&A) deal value came close to $1 trillion in Q3 2021, largely supported by the tech, media and telecom (TMT) sector, according to GlobalData. The leading data and analytics company notes that TMT represented over a third of the total 8,650 M&A deals and contributed to 22% of total transaction value.

GlobalData’s report, ‘Global Mergers and Acquisitions (M&A) Deals in Q3 2021 – Top Themes by Sector – Thematic Research’, notes that the TMT industry saw 2,958 M&A deals in Q3, largely focused around the digital media and data analytics themes.

Snigdha Parida, Analyst on the Thematic Research team at GlobalData, comments: “Digital media has a special place in TMT, and is one of the most prominent themes every year in the M&A market. Big data analytics is seeing rapid growth across many industries thanks to companies increasing their digitalization initiatives, as they adjust to challenges brought about by the COVID-19 pandemic.

“Square’s acquisition of AfterPay – the biggest deal in the TMT sector for Q3 – is driven by the fintech theme. This deal boosts the banking and payments sector to second place after TMT in terms of transactions value.”

The apparel sector registered the highest year-over-year (YoY) growth in Q3 2021, in terms of both deal value and volume. The ADS sector had the next highest growth in deal value and the healthcare sector saw the next highest growth in deal volume, after apparel.

Parida continues: “After hitting a record-low transaction value in Q2 2020, the M&A market saw a sharp increase in Q4 2020, and has been recovering strongly throughout the first nine months of 2021. M&A transaction value grew by 21% from Q3 2020, while the number of deals made increased by 5%.

“The M&A market remains strong as companies look to gain new tools and technologies to help them adapt to the post-COVID world. The high market valuations for many TMT companies provides a ready currency with which to finance new deals. Total transaction values at or above the trillion dollar level are expected to continue into Q4 2021 and potentially beyond.”

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