How the tech M&A landscape is heating up
It is no secret that 2016 has been an eventful year for reform and development on a global scale, but what do we know about the ramifications on the merger and acquisition landscape? Why is Asia-Pacific the region everyone has set their eyes on?
For one, the concerns and skepticism raised by Brexit and the recent political and regulatory uncertainty in the US are sufficient to waver investors and bump them off the list of attractive target destinations. But are these really enough to stir this much interest in the APAC region?
Apart from that, several exciting developments in the Asian political and corporate landscape, alongside greater harmonization of governance standards has definitely strengthened APAC’s position as a top destination for M&A investment. Appetites for a share of the M&A pie in the region is set to grow, with China leading as the top Asian destination, closely followed by Japan and India.
APAC: Everyone wants a share of the pie
China often makes the headlines for their M&A activities. Last year it even overtook the US for the first time as the world’s biggest “acquiring nation” in the tech industry. Although China is prominent in the M&A scene, it has seen a slight slack in growth. We can, however, expect to see increased M&A activity primarily in the APAC region, specifically across India and Singapore.
India is no doubt in a good position due to several factors in play – optimistic investor sentiments, tax harmonization, and the relaxed FDI restrictions are elements potential investors can leverage on, making it an attractive investment destination.
Given Singapore’s reputation for political stability, a fair economic climate, and clear government policies, global private equity funds have shown interest in regional IT plays and experts also estimate that Singapore will continue to see a rise in M&A activity.
The ‘it’ tech verticals
Technology has always been a top target sector for the M&A market globally, and this trend is expected to continue in the coming years.
Fintech, in particular, has been on the rise with the promise of great economic prospects in 2017. With the fast advancement of technology, major financial institutions are embracing these changes by making fintech acquisitions to accelerate the adoption of new innovation into their business.
Besides that, according to EY, other verticals worth watching on a regional scale also includes ecommerce, IoT, artificial intelligence and machine learning. These verticals could push dealmaking even higher late in the year and in 2018.
Hear it from the pros
Of course, while everyone has their speculations and forecasts of the M&A market, it could be wise to listen to what the experts have to say.
This May 18, Tencent and Rocket Internet will be holding an insightful and engaging panel discussion, titled “Buy or Sell: How the M&A Landscape is Heating Up”, at Tech in Asia Singapore 2017’s Main Stage. Join this session to find out what the future holds for M&A, and whether 2017 will be a good year for making deals.
The heat is on, and time is running out – it’s your last chance to enjoy 10 percent discount off (code: tiasg10) on your conference passes (only until this Friday, 28 April) and meet the big boys of the scene.
So what are you waiting for? Get your tickets today!
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