Positive M&A outlook 2024 for IT-markets

2023 concluded surprisingly with a positive market performance, witnessing a 14% increase in the AEX. Internationally, particularly on the Nasdaq, there was a remarkable surge of 44%, primarily driven by rising stocks in the Technology sector.

Despite the notable inflation spike in 2023, both the US and EU Central Banks succeeded in managing it. This had favorable effects on the credit capacity of financial institutions and larger ICT investors, resulting in advantageous interest rates for loans supporting new technologies and higher valuations for mergers and acquisitions in the technology sector.

Market leaders such as Apple, Microsoft, Google, Amazon, and META delivered significant performances, boasting ample capital availability for direct investments in new technologies and acquisitions.

Prominent megatrends include the rise and practical application of AI, coupled with the increasing role of mergers and acquisitions. Analysts predict substantial progress in the automation of labor-intensive tasks, such as agricultural work and driving, between 2024 and 2025. AI is expected to further automate business software applications, minimizing the need for human labor. These shifts are anticipated to accelerate, driven by substantial investments from venture capital.

A notable highlight of the 2023 market year was Nvidia, the US chip company, experiencing a 247% surge in stock value due to the widespread deployment of generative AI. Nvidia produces the world’s most sought-after AI chips and achieved record profits this year. Investor confidence in generative AI, notably popularized by OpenAI’s ChatGPT program, translated into stock value increases for other technology companies in the past year. Alongside Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta, and Tesla also witnessed significant stock value growth.

Finally, we noticed the acquisition of the German listed Software AG by SilverLake (US Investor) and the acquisition by IBM of 2 Data Integration Platforms StreamSets and WebMethods. With the acquisition, the company expects to strengthen its position in the field of cloud services that are tailored to AI applications. The demand for this is increasing and could be saving lots of money in IBM’s extensive installed base where in past substantial investments were made in tailor-made software for the larger and midsize markets.

AI holds significant potential for enhancing Data Integration processes, resulting in heightened efficiency. This has a profound impact on the substantial i-PaaS market. Presently, we are also engaged in this specific market.

With confidence, we eagerly anticipate 2024 and are ready to share our insights on specific opportunities with our valued relations.

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