M&A activity in the technology, digital, media, and marketing spaces remained strong in 2022 despite global volatility.
According to a report from specialist advisory firm Ciesco there were 2,095 transactions within tech, digital, media, and marketing – a year-on-year increase of 20 per cent.
This was despite a war in Ukraine, supply chain issues linked to Covid and China’s shutdown, and an economic downturn.
M&A advisory firm Ciesco, tracked the transactions, said that the USA and the UK were the most active M&A markets in 2022, logging 888 and 293 deals respectively. Activity in the USA and UK made up more than half of all global deals.
The firm’s Annual Global M&A Review showed it was also a busy year for M&A in France, Germany, Australia, and Canada, who followed the USA and UK in terms of deal volume. APAC saw the greatest year-on-year increase. M&A activity climbed 92 per cent from 2023.
Ciesco CEO Chris Sahota, said though few anticipated the events of 2022, M&A activity in the tech, digital, media, and marketing sectors ‘remain buoyant’. He was was optimistic that this would continue throughout 2023, despite high inflation, cost-of-living challenges, and uncertainty surrounding the war in Ukraine.
He said that 2022 saw a dramatic negative shift in macro conditions and in outlook, but many business leaders adapted.
Ciesco said another clear constant in M&A throughout 2022 was the major activity of Private Equity buyers. The number of global Private Equity-backed deals recorded by the firm climbed 11 per cent from the year before, and PE buyers accounted for 42 per cent of all deals.
There was high M&A activity in the digital media, martech and digital agency sub-sectors. These were the main sub-sectors of investment by PE buyers, amounting to 56 per cent of all the deals executed. The most active PE buyers and backers in the sector were Carlyle Group with 13 deals, and Providence Equity Partners, Kohlberg Kravis Roberts and Providence Strategic Growth with eight deals.
There were 11 deals above the $1 billion threshold in 2022 – a decrease on the 33 seen the year before. There were three ‘mega deals’, involving values of more than $10 billion. Evergreen Coast Capital led a consortium to acquire the American data and market measurement company Nielsen for $16 billion, the highest-value deal in 2022.
The Annual Global M&A Review also cast light on companies in the healthcare and sustainability sectors, which have become highly acquisitive following the Covid-19 pandemic due to the increased importance of quality and preventative healthcare, and boardroom pressure relating to addressing environmental issues.
