Tech, media, and telecom (TMT) M&A leads in strong Q2’21 market

The need, ability and confidence to do TMT deals may be at an all-time high—but buyers must be nimble in a hyper-competitive market.

Chad Seiler

Chad Seiler

Partner, Deal Advisory, KPMG US

+1 408-367-7603

Phil Wong

Phil Wong

Principal, Advisory, Technology Industry Strategy, KPMG US

+1 617-899-8999

Scott Jones

Scott Jones

Principal, Advisory, Strategy, KPMG US

+1 408-367-7002

Deal activity across tech, media and telecom (TMT) rebounded quickly after the pandemic took hold—and to the surprise of many, did so with a vengeance. By Q4’20, M&A activity in TMT eclipsed pre-pandemic levels (driven by tech)—and that momentum has continued. In Q2’21, TMT printed 2,097 deals (27 percent of total announced deals) with total deal value of $338 billion.

TMT has always been a leader in M&A, driven by accelerating trends in technology, convergence, and the potential for outsized returns for PE and VC investors. Recent activity has also been fueled by an acceleration in digitization, which is increasing demand for IT services, cloud capacity, cyber, and SaaS. The need for technology and infrastructure to support remote working, streaming entertainment, and IoT are also driving deals.

In this Q2’21 analysis of deals in TMT, we find:

  • Cybersecurity was hot. Strategics acquired across the spectrum to augment their offerings. Meanwhile, PE continued acquiring and building platforms to scale and operationally enhance. Our teams were certainly active helping both sets of buyers.
  • Deals are growing larger.
  • SPACs remain a potent force.
  • Private equity continues aggressively deploying capital across TMT

TMT deal value and volume

Technology deal value and volume


Media deal value and volume

Telecom deal value and volume

The conditions are ripe for TMT deal activity. For both strategics and PE investors, the need, ability and confidence to transact may be at an all-time high.

  • The need. Megatrends such as digitization push strategics to accelerate the use of M&A as an offensive tool to drive innovation and product development; PE investors continue to make buy-out and growth-equity bets across the industry in their quest for outsized returns.
  • The ability. Strategics are sitting on ample deal currency, with record cash balances and equity valuations at all-time highs. PE continues to hold growing amounts of dry powder earmarked for TMT (supported by abundant cheap debt).
  • The confidence. CEOs, boards and investors may be more confident than ever right now—a key ingredient in deal making.

In this quarterly report we unpack trends across each of the sectors as well as deep dives on three key areas: 

Download the full report to uncover what is happening in these dynamic industries, how deals are being done today—and why.