KP TECH Analysis: Total value increase in M&A transactions in the European technology sector in Q3 2010

The combined value of all deals increased 77% to $52.6 billion compared to $29.7 billion the quarter earlier. There were 625 acquisitions involving European technology companies in the third quarter of 2010, compared to 706 deals announced the quarter before. There were five technology IPOs in Europe in Q3 2010 compared to 12 in the previous three months. The number of acquisitions over $1b continues to increase with twelve in the quarter and 22 in total 2010.

In Q3 2010, buyer action from Eastern European firms bucked the trend with an increase of 11%. Companies from the region have been consistent buyers in the telecom services sector but are now showing serious interest in software and IT services companies. So far this year Eastern European companies have acquired 43 companies in this sector compared to 18 by Indian companies.

The most outstanding feature of the first nine months of 2010 has been the substantial increase in deals in the Software sector (up 36% on a year ago). Growth is coming from the application (enterprise and consumer) side of the market rather than the system side. The other primary growth area has been in Telecom Services where the number of deals is up 17% on a year earlier.

The majority of the buyers in the technology sector in Europe, with 45% of all transactions, are private corporates. On the buy-side, Private Equity investors have returned to normal investment activity. They directly accounted for over 94 deals, 15% of all acquisitions in Q3 2010. There were 73 VC and Private Equity exit transactions in Q3 2010 compared to 43 in the previous quarter and just 22 in Q3 2009.

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
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Tel.: +49 (0) 69-713786-0
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Internet: www.tech-corporatefinance.de
E-Mail: info [“at”] tech-corporatefinance.de
Managing Partner: Sandra Preuß, Michael Klumpp

This release was published on openPR.