Technology & Services – Mergers & Acquisitions (M&A) Q3 Update 2022 – Report

by Sidhant Rastogi, Managing Partner, Zinnov; Anand Kalra, Principal, Zinnov; Ayushi Suhaney, Project Lead, Zinnov; Prakash Jain, Project Lead, Zinnov

Q3 2022 saw a notable dip in the global M&A volume as compared to the recent quarters, tumbling ~16% y-o-y (based on the number of deals) and by ~58% y-o-y (based on total disclosed deal values). On a nine-month basis, global M&A activity reached USD 2.8 Tn, ~34% down from 9M 2021, and even less than H2 2021.

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Globally, the IT sector is continuing to see correction amidst a recessionary environment. While the sector continues to trade at a premium when compared with broader indices, there has been a sharp correction in the public valuation multiples. Technology M&A took some hit, and for the first time since Q3 2020, recorded a deal value of less than USD 200 Bn. An absence of megadeals was felt clearly, because the total deal value fell by ~71% y-o-y, in contrast with only a ~13% y-o-y decline in the number of deals in Q3 2022.

To take stock of the global M&A landscape in the Technology & Services space in the quarter gone by, we are back with our quarterly M&A update.

The report sheds light on:
• M&A activity and trends and marquee transactions in the IT/ITeS space in Q3 2022
• Valuation trends, key M&A themes, sectoral tailwinds, and near-term risks – taking into account the looming recession
• Zinnov insights on Private Equity and M&A
• IT Services Transaction Activity in Q3 2022

With the weak macro environment is presenting ample opportunities for CXOs to acquire assets at an attractive valuation and generate healthy returns on invested capital, will Mergers & Acquisitions continue to be vital in charting firms’ corporate growth strategies? Valuation multiples have plummeted amid the market correction – what does this mean for the M&A space? The report has answers to these questions and more.

Read the Q2 Report here.

Read the Q1 Report here.

Please click the image to view the full study.

Technology & Services - Mergers & Acquisitions (M&A) Q3 Update 2022 – Report

Read our
Technology & Services M&A Quarterly Report | October 2022

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