Merrill DataSite Releases New Comments: Telecoms M&A Looking at Biggest Year Since 2006
New York, US (PRWEB) July 17, 2013 -- Read the full article here: http://bit.ly/12yy97N
Analysts from Bloomberg have said that some $80 billion in telecommunications and cable transactions have been announced or completed in the first half of this year alone, with deals spanning across continents and involving many of the world’s biggest companies – meaning 2013 could become the biggest year for mergers and acquisitions in the sector since 2006.
Bidding wars are now at a level that have not been seen for seven years due to a surge in M&A activity caused by companies in the industry seeing a slowdown in demand for wireless and internet services.
Telecoms companies are coming under increasing pressure in terms of their margins, which is pushing them towards M&A. US companies are increasingly looking towards the European markets for viable targets, as many European telecommunications companies are feeling the squeeze, after postponing investment during the debt crisis causing revenues to plateau.
The surge in M&A activity has come as companies are seeing a slowdown in the demand for wireless and internet services. With a shrinking pool of potential acquisitions around the globe, major companies – including the Dish Network Corp., Japan’s SoftBank Corp. and the UK’s Vodafone Group Plc. – are stoking bidding wars at a level that has not been seen in seven years. Bloomberg has reported that if the mission by Verizon Communications Inc. to bid for Vodafone’s stake in Verizon Wireless is successful, then the deal volume for the year so far would more than double.
US companies are increasingly looking towards the European markets for viable targets, as many European telecommunications companies are feeling the squeeze, after postponing investment during the debt crisis causing revenues to plateau. Smaller companies are carrying out mergers of rivals or add-ons as part of efforts to consolidate their capabilities and provide realistic competition to the biggest carriers. An example of this in April this year was the acquisition by Deutsche Telekom AG of MetroPCS Communications Inc, in order to merge it with its US unit – T-Mobile – and develop their services. Some $281.8 billion of telecommunications deals were announced during 2006. With $80 billion worth of deals announced or completed so far this year, the total could well exceed the total $157 billion registered in 2012, certainly breaking the $124 billion worth of deals that were carried out in 2012. The potential Verizon-Vodafone deal – which could be worth $120 billion or more – would certainly drive the total to its highest level since 2006.
About Merrill DataSite
Merrill DataSite is a secure virtual data room (VDR) solution that optimises the due diligence process by providing a highly efficient and secure method for sharing key business information between multiple parties. Merrill DataSite provides unlimited access for users worldwide, as well as real-time activity reports, site-wide search at the document level, enhanced communications through the Q&A feature and superior project management service - all of which help reduce transaction time and expense. Merrill DataSite’s multilingual support staff is available from anywhere in the world, 24/7, and can have your VDR up and running with thousands of pages loaded within 24 hours or less.
With its deep roots in transaction and compliance services, Merrill Corporation has a cultural, organisation-wide discipline in the management and processing of confidential content. Merrill DataSite is the first VDR provider to understand customer and industry needs by earning an ISO/IEC 27001:2005 certificate of registration – the highest standard for information security – and is currently the world’s only VDR certified for operations in the Europe, United States and Asia.
As the leading provider of VDR solutions, Merrill DataSite has empowered more than two million unique visitors to perform electronic due diligence on thousands of transactions totalling trillions of dollars in asset value. Merrill DataSite VDR solution has become an essential tool in an efficient and legally defensible process for completing multiple types of financial transactions.
For more information, please contact Merrill DataSite: Tel: 1-866-399-3770;
Email: info(at)datasite(dot)com; Web: http://www.datasite.com
Read the full article here: http://www.datasite.com/telecoms-mergers-acquisitions-looking-at-biggest%20year110.htm
View our Knowledge Centre here: http://www.datasite.com/white-papers.htm
Follow us on Twitter: @merrilldatasite
Catherine Malone, Merrill DataSite, http://www.datasite.com, 212.229.6649, [email protected]
Share this article