Analysts have different explanations for the large number of deals in TMT.

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The authors of the study explain the large number of transactions in the TMT segment by the accelerated pace of import substitution, active government support and increased interest from strategic investors in promising companies.


"The technology romania whatsapp resource has become the leader among acquisition deals against the backdrop of external restrictions and Russia's strong lag in this industry. It was in the IT industry that the largest share of foreign companies on the Russian market was, after their departure there was a high demand for similar products of Russian manufacture, which is why such startups began to be bought up en masse. In the telecommunications sector, there was an acute dependence on foreign equipment and components, but in fact there was one major deal there for the sale of VimpelCom, the rest were insignificant," says Vladimir Chernov, an analyst at Freedom Finance Global.

Artem Tuzov, Director of the Corporate Finance Department at IVA Partners, attributes this to the fact that in the TMT sector, IPOs are conducted at international rates. From this, he concludes that non-public merger and acquisition activity is also taking place at good levels.

Another possible reason may be the trend towards digital solutions. This is typical not only for Russia - the trend is noticeable in the world. "High-tech companies, artificial intelligence (AI) - this is a very trendy story, and it is connected with the fact that information technologies have already penetrated into all spheres: from agriculture to development, from security to medicine. There are no sectors where AI technologies would not be used. At the same time, the TMT sector accumulates the most modern and breakthrough ideas, which attracts investment capital," says Leonid Pavlikov, Director of the M&A division of FG Finam.

Artem Mikhaylin, an analyst at VELES Capital, notes that the IT segment is characterized by a large number of small companies and their subsequent consolidation into larger structures as the segment develops. In addition, the redistribution of property continues against the backdrop of the departure of some foreign players from the market. He attributes the large number of transactions in TMT to these two factors.

What's Happening in the M&A Market
Overall, the M&A market grew by 18% in 2023: from $32.4 billion to $38.1 billion. However, the number of deals remained almost unchanged: 617 in 2023 versus 615 in 2022.

Vladimir Chernov believes that the results are ambiguous. "The number of transactions with foreign businesses has significantly decreased compared to 2022, when foreign companies were massively withdrawing their businesses from Russia. This means that the number of M&A transactions without the participation of foreign companies has increased significantly. Usually, a sharp increase in M&A transactions occurs during times of economic crisis, when larger and stronger companies stay afloat and absorb smaller ones and those on the verge of bankruptcy, so these results can be assessed ambiguously, that is, in some cases, as a forced measure to save the business," explained Vladimir Chernov.