Unprecedented Demand for Internet
Telecom providers are experiencing unprecedented demand for internet access as more individuals are asked to stay or work from home due to the coronavirus outbreak. The Federal Communications Commission granted T-Mobile additional access to 600MHz spectrum for 60 days to cope with a surge in demand for internet access. Verizon outlined in its 2020 guidance to lay out an additional $500 million to speed up its transition to 5G to service more demand from customers.1 2
$30 Billion Merger Finalized
After a lengthy process and review, T-Mobile and Sprint have closed their $30 billion merger on April 1, 2020. The new telecom giant is working quickly to develop and deploy its 5G technology seen as critical to the nation’s infrastructure.3
Huawei Technology in US to be Replaced
February 17, the U.S. Senate approved $1 billion for rural telecom carriers to replace Huawei and ZTE Corp. equipment. About 40 rural carriers will receive the funds. The legislation is a result of the U.S. viewing Huawei technology as a national security concern, encouraging other manufacturers to supply 5G hardware for the U.S.’ 5G network roll out.4
Cyber Security Remains at Forefront
The pandemic has transitioned massive amounts of employees to work remotely and in many cases on personal devices. This increases the number of access points for cyber criminals to attack a business’s resources. The increased risk of a data breach is expected to increase corporate budgets on cyber security to shore up these weak access points.5
National Security Grounds Block Foreign Investment
Trump administration forced Beijing Shiji Information Technology to divest StayNTouch, an American cloud-based hotel management software company, and its customer data within 120 days. The action is backed by a 2018 legislation passed by Congress, the Foreign Investment Risk Review Modernization Act, that allowed government to block transactions on national security grounds.6
Largest Transactions Closed
- Zayo Group Holdings, Inc.
- EQT Partners AB; Digital Colony Management, LLC; Devonshire Investors, LLC
- Honey Science Corporation
- PayPal Holdings, Inc.
- Cision Ltd.
- MJ23 UK Acquisitions Limited
- AECOM Management Services, Inc.
- American Securities, LLC; Lindsay Goldberg, LLC
- Instructure, Inc.
- Thoma Bravo, LLC
- Armis, Inc.
- Insight Venture Management, LLC; CapitalG Management Company, LLC
- AVX Corporation
- Kyocera Corporation
- Shape Security, Inc.
- F5 Networks, Inc.
- Software Solutions Business of Pitney Bowes, Inc.
- Starfish Parent, LP
- Care.com, Inc.
- IAC/Interactive Corp
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes