Telco sector already proving M&A watchers right


Telco sector already proving M&A watchers right

Simon Quicke

The tie-up between Nokia and Microsoft is being heralded as an indicator that those predicting a large amount of activity in the telco sector are on the right track.

KMPG recently made its forecasts around mergers and acquisition activity highlighting the telco area as one which should see a high level of financial transactions driven by its value and growth.

Against the backdrop of the Mobile World Congress the financial specialist reaffirmed its belief in a busy time ahead on the M&A front in that sector.

"The Telecoms sector is in for the next wave of M&A activity over the next 2-3 years. Big ticket players will be looking to joint ventures and partnerships just as much as acquisitions," said Joe Gallagher, UK head of Telecoms at KPMG.

"Nokia's recent announcement to partner with Microsoft is one flavour of change.  Sharing of heavy network assets is already underway," he added that the move by Deutsche Telekom and France Telecom-Orange to co-operate on Wi-Fi-roaming "is likely to be the first of many announcements".

In its recent M&A predictions report the tech sector emerged as a strong target with the valuations and returns being offered for investors much higher than in other areas of the economy.

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