Sep 2018 - IDC Perspective - Doc # US44052518
Telecom and Cable Service Provider M&A and IPO Analysis, 1H18
By: Courtney MunroeGroup Vice President of Worldwide Telecommunications Research, Mark WintherGroup Vice President and Consulting Partner, Worldwide Telecommunications, Ragupathy Vellappa, Venkatesh MahaleSenior Research Analyst, Worldwide Telecommunications
This IDC Perspective provides an overview and analysis of telecom and cable service provider network M&A deals and IPOs disclosed in 1H18. The document is limited to M&A deals in which the acquirer would take operational control of the target company.
According to Ragupathy Vellappa, associate research manager, Worldwide Telecommunications Research, "There was tremendous growth in 1H18 for M&As in telecom and cable service provider networks in terms of deal value. There were nine billion-dollar deals disclosed in this period that accounted for 97% ($102 billion) of total deal value. T-Mobile US–Sprint and Vodafone–Liberty Global's assets in Germany and CEE were the two high-profile deals disclosed in 1H18 that accounted for three-fourth of total deal value. Achieving scale will remain the top priority for communications service providers to pursue M&As in the second half of 2018. At the same time, sector convergence and advances in technology and digital transformation will continue to drive communications service providers to add network adjacent assets such as digital media, IoT, OTT video services, and cybersecurity. There has been renewed enthusiasm by private entity investments, which led to the increased M&A activity.