M&A activity up by 28% in Q1 FY22

There were 174 deals in the first quarter of this yea

July 14, 2022

The technology, media and telecom (TMT) sector led the M&A market in India at US$ 11.5 billion

India’s mergers and acquisitions (M&A) market is expected to see a strong performance powered by technology

The US accounted for 35% of India’s M&A market activity

Global M&A deal activity saw TMT projects rise by 18%

India’s M&A activity went up by 28% to reach 174 deals in the first quarter of this year, according to experts from Datasite, a technology provider for the global M&A industry.

The TMT sector was leading the M&A market in India at US$ 11.5 billion, by claiming six of the country’s top 10 largest deals in Q1 FY22. 

The experts said that India’s M&A market is expected to see a strong performance powered by technology. Dealmakers are observing how machine learning and artificial intelligence are automating many of the labour-intensive steps in M&A activities, including planning, marketing, and facilitating due diligence for both the sell and purchase sides. 

India’s M&A market activity is also being driven by strong interest from overseas investors, resulting in its good performance. The US accounted for 35% of the total international investment. 

According to Datasite’s reports, global M&A deal activity saw TMT projects rise by 18%. From January to May 2022, companies are continuing to invest in technology to undergo digital transformations. The move has been accelerated by the pandemic. 

Due diligence across all sectors has increased this year. The report further added that the median length of time for a new deal, an asset sale, or a merger, to launch and close has increased on a 5% year-over-year (YoY) basis in 2022. Deal preparation time has also grown by 31% during the same period.