Global: A new record was set for M&A activity in TMT in the first half of 2023, with around 8,500 deals announced, 100 more than the previous record of 8,400 deals that was established in the first half of 2021. However, the second half of the year was a different story, with deal volumes declining by 31% from the first half of the year to less than 6,000 deals. For 2023 as a whole, deal volumes ended the year down 1% on the prior year. Deal values decreased by 44% in 2023 compared to the prior year, primarily because of a combination of smaller deals and lower valuations. Furthermore, the number of TMT megadeals dropped from 42 in 2021 to 24 in 2022 and just 11 in 2023.
Asia Pacific: Deal volumes decreased 7% in 2023 compared to 2022, with a 13% decrease in deals in the media and entertainment sector and a 7% decrease in technology deals, partially offset by a 9% increase in telecommunications deals. Deal values decreased by 38% in 2023 compared to the prior year, primarily because of a combination of smaller deals and lower valuations across all three sectors. There were no TMT megadeals in Asia Pacific in 2023, compared to two in 2022.
EMEA: Deal volumes decreased 1% in 2023 compared to 2022, due to a 12% decrease in deals in the media and entertainment sector and a 10% decrease in telecoms deals, partially offset by a 1% increase in technology deals. Deal values decreased 9% in 2023 compared to the prior year, as the technology sector declined by 22%, partially offset by increases in both the telecommunications and media and entertainment sectors of 7% and 6%, respectively. The deal values in EMEA were boosted in 2023 by three European telco megadeals and one large PE-backed media and entertainment megadeal.
Americas: Deal volumes increased 5% in 2023 compared to 2022, based entirely on the growth in technology deals. Telecom deal activity decreased 21% and media and entertainment dealmaking declined by 3% over the same period. Deal values decreased by 55% in 2023 compared to 2022, primarily due to the scarcity of megadeals—particularly those in the technology sector—which have historically favoured the Americas region.
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