TMT

2024 Q1

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The outlook for 2024 is largely positive for the M&A market. A recently published study by MergerMarket concludes that 55% expect deal activity to increase in the next 12 months. The interest rate environment has stabilised and speculation has begun as to when the first interest rate cuts will take place. This has reduced one source of uncertainty, which is already reflected in increased deal activity and cautious optimism. The TMT market in particular was severely affected by the interest rate hikes and deal activity, together with valuation levels, fell significantly in the second half of 2023. However, the first quarter of the new year also shows a stabilisation in the tech sector. It can also be observed that high multiples are still being paid for highly attractive software companies, precisely because private equity still has considerable ‘dry powder’. However, increased selectivity can certainly be observed, which on average supports the reduced transaction and valuation level, but still leads to significant valuation premiums for top-performing companies at the upper end.

This edition of our sector report focuses on the publishing industry. The sector is largely characterised by medium-sized companies and is subject to a number of structural challenges. We highlight six key M&A topics that are leading to transaction activity in the market. Meanwhile, in the Deal Report we look at the acquisition of Katek SE by Kontron. A merger that is set to create a European technology leader in the field of renewable energies and electrification.

Our SektorReports are available in German language. If you have further questions regarding this topic, feel free to get in touch.