DUBAI: Mergers and acquisitions (M&A) in the technology, media, and telecom (TMT) market last year bounced back from the impact of the coronavirus disease (COVID-19) pandemic with deals worth nearly $1 trillion.
There were 702 M&A agreements announced with a transaction value greater than or equal to $50 million in the global TMT sector in 2020, according to data and analytics company GlobalData.
Its latest report, “M&A in TMT – 2020 Themes,” revealed that the combined transaction value of $903 billion was a 25 percent increase on 2019, when there were $723 billion worth of deals.
The second quarter (Q2) of 2020 saw just 103 M&A deals in the sector – the lowest quarterly deal count in the last five years – but volume rebounded to 230 in Q3 and 222 in Q4, making the second half of the year the highest in terms of both number and value of deals in the last five years.
In 2020, the total value of M&A deals in the TMT sector was the highest in America (including North, Central, and South America) reaching $492 billion, while it was the lowest in the Middle East and North Africa (MENA) region at around $13 billion.
In the MENA region, Israel led with 11 deals with a transaction value of $6 billion, followed by Turkey at $2.6 billion.
Snigdha Parida, analyst for thematic research at GlobalData told Arab News: “The key themes driving the M&A activity in terms of number in the MENA region are gaming, big data, and connectivity.
“M&A in the gaming sector has thrived during the COVID-19 pandemic globally with 130 percent year-on-year growth and has the same effect in MENA as well.”
Gaming leads the way with four deals valued at more than $50 million in the MENA region. The biggest deal among these was in the social gaming space where Zynga acquired Peak Oyun Yazilim ve Pazarlama for $1.8 billion.
The other prominent themes were e-commerce and technology. For instance, Collective Growth Corp. acquired Innoviz Technologies for $1.4 billion; Hellman and Friedman bought Checkmarx for $1.1 billion, and EPMG purchased OLX for $1 billion.
“The increase in mobile penetration and prolonged lockdowns with people working from home are driving investment around gaming and connectivity,” added Parida.