Cloud Emerged as a Key Driving Force for Tech, Media and Telecom Deal Activity in 2024: GlobalData
According to GlobalData, amidst the rising mergers and
acquisitions (M&A) deal activity in the tech, media and telecom (TMT)
sector, the cloud has emerged as one of the dominant themes. However,
persistent inflation, relatively high interest rates, regulatory scrutiny and
geopolitical tensions have created a challenging backdrop for the M&A
market in 2024.
At the same time, the demand for cloud computing continues to
surge as businesses seek greater scalability, agility and operational
efficiency, revealed GlobalData.
GlobalData's latest report, "Global TMT M&A Deals
2024 - Top Themes and Predictions - Strategic Intelligence", highlights
that cloud-related deals totaled $61 billion in 2024, making it the
second-largest theme among the top 100 deals and reflecting a 221 percent
growth from the previous year.
The total global TMT M&A deal value grew 27 percent in
2024 to $514 billion, compared to $403 billion in the previous year. Similar
trends were seen in deal volume, which totaled 512 deals in 2024, and grew 14
percent from 2023.
Priya Toppo, Analyst, Strategic Intelligence at GlobalData,
said, "In today's fast-paced market, adopting cloud-based solutions is
essential for maintaining a competitive edge, while those slow to adapt risk
falling behind. To enhance cloud performance, companies have invested in
AI-driven IaaS, PaaS and SaaS solutions, alongside expanding hyperscale cloud
infrastructure and edge AI capabilities."
The biggest cloud deal was Blackstone's acquisition of AirTrunk
for $16 billion. This deal was also the biggest in APAC (excluding China)
region in 2024. It was followed by IBM's acquisition of HashiCorp for $6.4
billion and Clearlake Capital Group and Insight Partners' acquisition of
Alteryx for $4.4 billion.
"A significant amount of M&A
deal activity was driven by the application software sector in TMT, accounting
for $253 billion across 230 deals. This was followed by the telecom services,
IT services, music, film and TV, and gaming sectors," said Toppo.
"Although the TMT sector saw growth in M&A activity in 2024, cloud
deals played a crucial role, with major companies like Microsoft, Google,
Amazon and Oracle acquiring AI-native cloud firms, cybersecurity providers and
data analytics companies to strengthen their cloud ecosystems. marked by a
substantial decline in both deal value and volume. The outlook for M&A
activity in 2025 remains subdued; however, easing inflation and lower interest
rates may lead to a gradual recovery," concluded Toppo.
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