Technology deals buck Q3 trend         

Total deal values fell from $1tn in Q2 to $682bn in Q3, although M&A through the first three quarters of 2018 is up on the same period last year ($3.023tn vs $2.368tn).         

This dynamic is mirrored in the year’s strongest performing sector, technology, media and telecoms (TMT), where deal values to the end of September outstrip 2017’s annual total ($696.5bn vs $660.3bn) despite a $95.8bn drop in value in Q3 to $134.8bn. Within TMT, however, technology deals buck the trend, rising from $80.7bn in Q2 to $93bn in Q3.

Buyers continue to target data assets, with notable transactions in 2018 including Strategic IDC’s $2.8bn acquisition of Global Switch Holdings (an owner and operator of data centres) and a consortium including Tencent Holding paying $3bn for an undisclosed minority stake in Walnut Street Group Holding (the holding company of the Pinduoduo e-commerce platform.

Visit Freshfields' Q3 2018 M&A monitor for our latest analysis on the state of the market.