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Amidst the rising mergers and acquisitions (M&A) deal activity in the tech, media, and telecom (TMT) sector, the cloud has emerged as one of the dominant themes.
However, persistent inflation, relatively high interest rates, regulatory scrutiny and geopolitical tensions have created a challenging backdrop for the M&A market in 2024. At the same time, the demand for cloud computing continues to surge as businesses seek greater scalability, agility, and operational efficiency, reveals GlobalData, a leading data and analytics company.
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GlobalData’s latest report, “Global TMT M&A Deals 2024 – Top Themes and Predictions – Strategic Intelligence,” highlights that cloud-related deals totaled $61 billion in 2024, making it the second-largest theme among the top 100 deals and reflecting a 221% growth from the previous year.
The total global TMT M&A deal value grew 27% in 2024 to $514 billion, compared to $403 billion in the previous year. Similar trends were seen in deal volume, which totaled 512 deals in 2024, and grew 14% from 2023.
Priya Toppo, Analyst, Strategic Intelligence at GlobalData, comments: “In today’s fast-paced market, adopting cloud-based solutions is essential for maintaining a competitive edge, while those slow to adapt risk falling behind. To enhance cloud performance, companies have invested in AI-driven IaaS, PaaS, and SaaS solutions, alongside expanding hyperscale cloud infrastructure and edge AI capabilities.”
Biggest cloud deal
The biggest cloud deal was Blackstone’s acquisition of AirTrunk for $16 billion. This deal was also the biggest in APAC (excluding China) region in 2024. It was followed by IBM’s acquisition of HashiCorp for $6.4 billion and Clearlake Capital Group and Insight Partners’s acquisition of Alteryx for $4.4 billion.
Toppo continues: “A significant amount of M&A deal activity was driven by the application software sector in TMT, accounting for $253 billion across 230 deals. This was followed by the telecom services, IT services, music, film & TV, and gaming sectors.”
By studying the themes that are currently driving the M&A market, the report also identifies potential future acquisition targets along with their thematic rationale.
Toppo concludes: “Although the TMT sector saw growth in M&A activity in 2024, cloud deals played a crucial role, with major companies like Microsoft, Google, Amazon, and Oracle acquiring AI-native cloud firms, cybersecurity providers, and data analytics companies to strengthen their cloud ecosystems. marked by a substantial decline in both deal value and volume. The outlook for M&A activity in 2025 remains subdued; however, easing inflation and lower interest rates may lead to a gradual recovery.”
