Data portability making deals easier to implement
Merger and Acquisition (M&A) deal value in Europe nearly doubled to £586.3 billion year-on-year during the first six months of 2018, according to new data from Thomson Reuters Deals Intelligence.
The total deal value – the highest since just before the 2008 financial crisis, rose even as the number of transactions in Europe slid by 18 percent to a 13-year low of 6,201, the Retuers data showed.
Paul Landsman, investment director at venture capital firm Livingbridge, said in an emailed statement to Computer Business Review: “One key factor that is enabling this agility is the cloud, giving business the ability to innovate and expand rapidly and economically.”
“Businesses that take a ‘cloud first’ approach are often able to achieve fast organic growth, which puts them in a strong position for acquisition, either of a company or by another company,” he added.
Having all your data and essential company operations stored in a secure public cloud means that a businesses can transfer its entire operation from one side of the world to the other without the need to move any physical components.
Depending on the nature of the business, a small sized company merging into a larger organisation can be done without the costly need to relocate data centers or the technical staff needed to maintain them.
Media Deals in the Billions
Merger and acquisitions record high numbers can be attributed to big deals in the technology, media and telecommunications (TMT) sector.
Currently Comcast and Disney are in a bidding war to secure assets belonging to Rupert Murdoch’s Twenty-First Century Fox, Comcast bid £50 billion pounds after Disney bid £40 billion. Not to be out done by Comcast Disney has raised its offer to £54 billion.
Another huge acquisition this year is the purchases of Time Warner Inc. by telecommunications company AT&T for £64 billion, the deal was cleared by a Federal judge this month with no conditions attached.
Paul Landsman points to Asia as another space of record growth: “Asia have seen a record level of M&A activity as their TMT hubs continue to flourish. Silicon Valley in the US, and cities such as Beijing, Tokyo and Bangalore across Asia nurture vibrant start-ups that attract attention on a global level.”
“We have also seen very high levels of optimism in the UK and other European countries, despite uncertainties around Brexit, as businesses manage to adapt economically to the changes that are taking place,” he added.