A spate of technology, media, and telecom deals could be in the pipeline given the volume of SPACs, Mergers & Acquisitions reports, citing a newly released Spring 2021 SPAC Market Report from Duff & Phelps. A third of such vehicles that are currently active are targeting TMT assets. The result could be a busy year for the sector.
Technology deals will be in the center of the action if the proportion of vehicles targeting the sector have their way. At 33 percent, active SPACs in this industry far outpace the 19 percent of unspecified blank check companies and 13 percent of healthcare-focused listings.
The would-be TMT deal frenzy could present a powerful lift for sector valuations. SPACs paid less for target companies in the sector in 2020 than in recent years, with a median acquisition value of 13.5x the last twelve months’ earnings. That’s relative to 18.1x paid in 2019 and 13.3x in 2018, when equity offering proceeds were only a quarter of 2020’s aggregate haul. Read more.
