Ciesco reports positive M&A activity in Q1 2022 despite geopolitical turmoil. In its latest report, Ciesco, a specialist M&A advisory firm operating in the technology, digital, media and marketing sectors, noted 500 transactions announced in Q1 2022 in the sector – a 17% increase in year-to-date activity from Q1 2021, with deal activity spiking 48% in January.
Ciesco’s research found Digital Agency, MarTech and Digital Media were the sectors showing the highest deal volume with 86, 67 and 64 deals respectively. Digital Agency was found to be one of the most successful sectors for M&A deals, returning a 72% increase in deal activity from 2021. Private Equity was the most active buyer in the M&A sector, representing 40% of all transactions recorded.
Chris Sahota, CEO of Ciesco, said, “We are seeing strong activity in our sector despite turmoil in Europe. M&A activity remained buoyant in Quarter One, proving that buyer appetite remained constant. As expected, Private Equity continues to be heavily engaged and active in the sector, being the most acquisitive buyer.’’
Ciesco identified the US as being the largest market for deal activity (48%) followed by Western Europe (23%), and the UK (13%). Blackstone and Deloitte remain active buyers in the report with five and four Q1 acquisitions respectively. Bpifrance, STG Partners, The Carlyle Group, Together Group Holdings and Vista Equity Partners each announced three transactions. The top the value deals noted by Ciesco were:
- Nielsen being acquired for US$16B by private equity consortium led by Evergreen Coast Capital Corp., an affiliate of Elliott Investment Management and Brookfield Business Partners
- Private Equity firm Veritas Capita’s $2.8bn acquisition of learning and traditional media company, Houghton Mifflin Harcourt;
- Chatham Asset Management’s $2.3bn acquisition of multichannel marketing communications company R.R. Donnelley & Sons;
- Content and data company Mobile Streams’ $1.1bn acquisition of cloud-based data tool company, Krunch.
Ciesco warns on increasing interest rates in response to global inflationary pressures which may impact how deals are funded in future months. However, data reveals that, globally, Private Equity firms are sitting on approximately $1.6 trillion of dry powder which urgently needs to be invested.
Ciesco combines senior-level industry practitioners with sector-specialist investment banking expertise. Their reports supply a bellwether analysis for M&A in technology, digital, media, and marketing.