KP TECH Analysis: M&A transactions in the European technology sector up 4% in Q2 2011

Acquisition activity in Q2 2011 jumped 4% compared to Q1 2011. There were 776 acquisitions involving European technology companies in Q2 2011, compared to 745 deals announced the quarter before. The combined value of the transactions in Q2 2011 was $51.5 billion. This was down from the $90.1 billion of deal value in Q1 2011 which included the $39 billion announced acquisition of T-Mobile USA by AT&T. However, the value of deals in Q2 2011 was 73% higher than the $29.7 billion in Q2 2010.

UK remains the dominant country in terms of buy-side activities but also Germany (+48%) and France (+4%) are seeing increased activities. In addition, Scandinavia (-16%) and North America (-16%) were less acquisitive following a strong level of activity in Q1 2011.

The number of transactions in the “Computer Equipment and Components” sector increased (up 22%) with 79 transactions in first half-year 2011. Also the sector “Electronic Equipment” increased (up 23%) with 103 transactions in the 1. HY 2011. Transactions in the Software sector remain almost unchanged with 207 transactions in the first half-year 2011 compared to 212 deals in the 1. HY 2010. Deal flow in the “Media and Content” sector has slipped slightly from 432 transactions in first half-year 2010 to 426 deals in the first half-year of 2011. The sector “Media and Content” is still the largest transaction sector.

The majority of the buyers in the technology sector in Europe, with 49% of all transactions, are private corporates. Also on the sell side the private corporates where responsible for the majority with more than 500 transactions in the second quarter of 2011. More than 160 transactions came from divestment scenarios. Venture capital and private equity exits continued with 83 deals in Q2 2011, up 20% from the 69 deals in Q1 2011.

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, engineering, laser technology, medical technology 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.

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

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.