BDO advises BT on $105M acquisition of Ribbit as TMT sector bucks pessimistic trend

BDO’s corporate finance team provided transaction support services to BT Plc on its recent $105m acquisition of Ribbit. This comes at a time that TMT companies (technology, media and telecoms) forecast growth of more than 20 per cent over the next three years.

Research from accountants and business advisers BDO LLP, reveals that nearly a quarter (23 per cent) of TMT companies are forecasting growth of more than 20 per cent over the next three years, and almost two-thirds (62 per cent) are forecasting growth of more than 10 per cent. This growth is mainly expected to be achieved through acquisition (60 percent), with expansion into new market segments and countries also a popular growth strategy.

In addition, an overwhelming majority of CFOs (80 per cent) are confident that their company’s will hit their revenue targets for growth over the next three years.

Brent Goldman, corporate finance partner at BDO LLP who led the team acting on BT Plc’s acquisition of Ribbit, said: “The TMT sector is quite resilient despite the economic climate and such deals demonstrate the opportunity in the sector for cash rich companies to make strategic acquisitions. The continued need for innovation and sector consolidation in a toughening economic climate are also factors driving continued M&A activity for TMT.”

Ribbit - ‘Silicon Valley’s first phone company’ was founded in February 2006 and provides an open platform which enables developers to create new and innovative voice applications and services.

“The transaction support services we provided to BT Plc further demonstrates our expertise in cross-border acquisitions for UK acquirers. It also enhances the experience we can offer clients in the technology sector,” Goldman added.

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