While M&A and financing activity across the Digital Media space slowed in Q3’18 after a record start to the year, the market witnessed growth in activity versus the same period in 2017. Compared to Q3’17, we saw the number of disclosed M&A transactions grow by 13%, while disclosed M&A transaction value more than doubled. Financings also grew nearly 7%, with disclosed financing value increasing more than 50% over Q3’17.
Key industry trends driving investments and acquisitions include:
- Increased financing activity in China-based targets and robust M&A activity in the U.S.;
- Continued growth in firms enabling the shift to eCommerce and digital delivery models, including delivery networks, marketplaces and payment processing platforms; and
- Resurgence in activity from global hedge fund and equity sponsors.