H1 2023 M&A activity in Technology & Media remains level in terms of number of deals, with demonstrable resilience predicted to continue in H2
July 2023, London
- Despite a cautious start to 2023, Technology & Media sector activity remains level in the first half of this year, compared to the first half of 2022. The volume of M&A deals has been showing signs of picking up, following a dip in Q1 2023. H1 2023 ended with 2% increase on H1 2022 and a 23% increase on H1 2021.
- Digital incl. Agency, AdTech/ MarTech, and Content & Production sectors continue to attract the most buyer interest.
- Notably, in H1 2023, PR & Communications demonstrated a 123% rise in deal volume.
- M&A activity in the USA, UK & Western Europe lead the deal activity in H1 2023, accounting for 77% of all activity. Notably, the deal activity in Japan tripled from 10 to 32 deals in H1 2023.
- Corporate-led (strategic buyer) acquisitions continue to account for the majority of transactions, but PE-backed deals account for a significant 42% of total deal volume.
1,051 transactions were announced in the first half of 2023 in the Technology & Media sectors. This was a 2% increase in year-to-date deal activity from the same period in 2022 and a significant growth on H1 2021 – up 23%, demonstrating strong post-pandemic recovery.
Against a backdrop of continued concern about inflation and interest rates, the half year saw strong M&A activity across all focus sectors, with the highest deal volume across Digital Services, Events, Content/Production and PR & Communications.
The USA and the UK were the most active M&A markets in H1 2023, representing 50% of all global deals within the focus sector. They were followed by France, Canada, Germany, Australia and Japan, all of which combined represent 70% of total deal volume. Deal volume remains above pre-pandemic 2019 levels, and a clear upward trajectory can be seen throughout February – June.
Our Market Intelligence found that the APAC region continues its rise in M&A activity, with a 25% increase from the same period in 2022. Companies in Australia and Japan were among the most attractive – these markets combined make up 45% of all activity in APAC.
About Ciesco
Ciesco is a leading specialist M&A firm with a focus on the technology, media, healthcare and sustainability sectors. Headquartered in London and operating globally, Ciesco offers a unique combination at partnership level of senior industry practitioners and sector specialist investment bankers. This enables an extensive network of contacts and strong relationships that reach into organisations worldwide at C-suite sponsor levels. Ciesco is well regarded in the market for its specialist advice derived from the deep understanding of the sector, industry and buyer landscape insights, and execution expertise.