KP TECH Analysis: Increase in M&A transactions in the European technology sector in Q2 2010

Acquisition activity in Q2 2010 increased by 9% compared to the second quarter of 2009. There were 706 acquisitions involving European technology companies in the second quarter of 2010, compared to 704 deals announced the quarter before. The combined value of all deals increased 8% to $29.7 billion compared to $27.5 billion the quarter earlier. There were twelve technology IPOs in Europe in Q2 2010. The number of acquisitions over $1b continues to increase with six in the quarter and 11 in 2010.

In Q2 2010, buyer action from the UK, Scandinavia and North America was positive. In special compared to a year ago, buyer intensity by North American companies is up over 70% in Q2 2010.

The most outstanding feature of the H1 2010 technology acquisitions has been the substantial increase in deals in the Software sector (up 41% on a year ago). Whilst System Software deals have remained relatively flat, Application Software (up 39%), Consumer Software (up 63%) and Internet Software (up 83%). The Media and Content sector further enhanced its position as the most active market segment with 203 deals in the last quarter.

The majority of the buyers in the technology sector in Europe, with 46% of all transactions, are private corporates. On the buy-side, Private Equity investors have returned to normal investment activity. They directly accounted for over 16% of all acquisitions in Q2 2010. More than 190 transactions came from divestment scenarios.

More details regarding this analysis are available by request at info [“at”] tech- corporatefinance.de.

KP TECH is an independent corporate finance and M&A adviser. The clients include both international and medium-sized companies from the technology sector among information technology, cleantech, biotechnology and measurement technology. KP TECH accompanied product and services companies in this sectors and act as expert partner in questions relating to mergers & acquisitions, company valuation, business due diligence and venture capital.

KP TECH Beratungsgesellschaft mbH
Westhafenplatz 1
60327 Frankfurt am Main
Tel.: +49 (0) 69-713786-0
Fax: +49 (0) 69-713786-27
Internet: www.tech-corporatefinance.de
E-Mail: info [“at”] tech-corporatefinance.de
Managing Partner: Sandra Preuß, Michael Klumpp

This release was published on openPR.