Tech M&A Outlook: Investment and regulatory trends

By: Sean Murphy (Norton Rose Fulbright/Inside Tech Law)

Earlier this year, we analyzed trends in mergers and acquisitions (M&A) within the technology sector, noting that the TMT (technology, media, and telecommunications) sector was the top performer in 2023 in terms of deal value and volume. While the sector has been relatively quiet this year, there are indications that this may be changing. In this report, we discuss the outlook for the tech sector across the UK, Europe, and China, and examine the influence of regulations on M&A activity.

A Subdued Landscape in Europe

Tech M&A activity across Europe has been somewhat muted overall, but there have been notable deals in recent months, highlighting the continued involvement of private equity firms in the market. We expect this trend to persist as private equity remains active in technology M&A across the region.

Slow Recovery in China

In China, the tech sector has shown signs of recovery, with a slight uptick in M&A activity during the first half of 2024, although the broader Asia-Pacific region remains sluggish. The recovery has been largely driven by cash-rich public companies and unicorn start-ups, alongside policy changes by the Chinese government aimed at attracting foreign investment.

However, geopolitical tensions—particularly the tech rivalry between the US and China—along with increased regulatory scrutiny, continue to pose challenges that are slowing the pace of M&A growth in China’s tech sector…

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