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Against all odds: US M&A 2020
TMT and healthcare top the charts
Insight

Sector overview: TMT and healthcare top the charts

The TMT sector was buoyed by global spikes in demand as the world shifted toward virtual interactions in every walk of life

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The healthcare industry has attracted ongoing investment to support research in COVID-19 vaccines and treatments

 

Businesses, students and consumers have relied heavily on technology to work, study and shop through the pandemic, and this has meant not only record performance for companies in the sector but an active M&A market for TMT. The sector delivered US$406.3 billion worth of deals in 2020, surpassing the US$294.5 billion figure for 2019—making it one of the few sectors to see an annual increase in total value. Deal volume in the sector came in at 1,419 transactions, down 6 percent from 2019.

The healthcare industry has been underpinned by similar fundamentals. Demand for healthcare services and medicines has been understandably strong through the pandemic period and the sector has attracted ongoing investment to support research in COVID-19 vaccines and treatments. PMB ranked as the secondbiggest sector by value, with US$194.9 billion worth of deals. This was down on the US$269.5 billion posted in 2019, but 2019‘s figures were skewed by the outsized US$74 billion takeover of Celgene by Bristol-Myers Squibb

The industrials and chemicals sector also ranked highly this year, despite registering a 22 percent decline in volume and a 34 percent fall in value. The sector placed second by volume with a total of 797 transactions and fourth by deal value with US$136.3 billion worth of transactions. Due to lockdowns and other pandemic factors,industrials and chemicals companies encountered falling demand and supply chain disruption in 2020.

The third-largest sector by value was financial services, which recorded US$143.1 billion in activity and 445 deals in total, while the third-ranked sector in terms of volume was business services, with 763 deals worth US$82.5 billion announced over 2020.

 

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Against all odds: US M&A 2020

 

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