In 2018, there will be a blowout in global telecom and technology industry mergers and acquisitions

According to a report released by world-renowned international law firm Baker McKenzie in collaboration with Oxford Economics, the global telecommunications and technology industry M&A scale will increase from $295 billion last year to $648 billion
in 2018.
Meanwhile, initial public offerings (IPOs) will rise from $21.
6 billion last year to $45.
5 billion
this year.

These two numbers will decline slightly over the next few years, but M&A and IPO activity will still be up
in 2020 compared to 2017.
Regionally, M&A growth will double in Europe in 2018, while Latin America and Africa and the Middle East, albeit on a smaller basis, will also begin to grow and are expected to quadruple
.

Matthew Gemello, a partner at Palo Alto-based Baker McKenzie, said innovations in artificial intelligence, cloud computing, cybersecurity and big data are driving M&A deal activity
.
Many businesses focused on using customer data will be interested in acquiring competitors and technologies to attract more customer engagement
.

The report also revealed that more cross-sector deals
will be expected this year.
Because this represents the continuous convergence of traditional industries and technologies, companies are fighting
to remain competitive.
When combining rapid innovation with a sustained drive for vertical integration, this creates new opportunities
for increased M&A activity.

A marked rise
is expected next year amid concerns about easing policy in the US and EU.
Several trends in embedding new technologies across sectors, coupled with aggressive investment in tech companies in emerging markets such as China and Saudi Arabia, bode well for strong deal activity
in 2018.
Indeed, in 2018, the global tech and telecommunications industry is expected to drive a rebound
in global IPO activity amid the Chinese government's efforts to push technology companies to go public.

Charles Whitefoord, a partner at London-based Baker McKenzie, said: "Many companies are sitting on huge amounts of cash
.
Technology companies are under pressure
to deploy this money or return it to shareholders.
”

Tom Rice, a capital markets partner at New York-based Baker McKenzie, advises that "established private equity funds offering investments or spin-offs in aging technology that need to be sold will help spur mergers and acquisitions and IPOs
.
" ”

Paul Rawlinson, Global Chairman of Baker McKenzie, added: "As long as global free trade is not affected, we expect both M&A and IPO activity to rise as deal matchmakers and investors gain greater confidence
in the business prospects of acquisition targets and newly listed businesses.
”