Nearly Half of Telecom Executives Seek M&A Within a Year, Says Ernst & Young
With many companies trying to adapt to convergence, nearly half of telecom executives are actively pursuing mergers or acquisitions in the next 12 months, Ernst & Young reported Monday. EY said 48 percent expected to pursue M&A, and 37 percent…
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have five or more deals in the pipeline. Adding talent is a big driver, with 71 percent saying that's the most important or second most important reason for pursuing an acquisition outside their sector, EY said. “Positioning for convergence is driving a number of [high-profile] deals, such as AT&T’s announced acquisition of Time Warner, yet smaller deals that can fill gaps in portfolios or provide innovative assets or people are also moving into focus as companies look to overhaul their business models,” wrote EY Global Telecommunications Leader Gaeron McClure. “A number of carriers are pursuing ‘bolt-on’ acquisitions in areas such as the Internet of Things (IoT) and over-the-top (OTT) video services.” EY surveyed 1,700 executives in 45 countries, representing 18 sectors including technology.