KP TECH Analysis: M&A transactions in the European technology sector up 22% in Q3 2011

Acquisition activity in Q3 2011 jumped 22% compared to Q3 2010. There were 763 acquisitions involving European technology companies in Q3 2011, compared to 776 deals announced the quarter before. The combined value of the transactions in Q3 2011 was $50.1 billion. HP’s acquisition of Autonomy for $10 billion was one of six large acquisitions during the quarter. IPO activity fell back to 14 across Europe, compared to 20 IPO‘s the quarter before.

The UK remains the dominant country in terms of buy-side activity in Europe. France and Germany were noticeably less active, after a strong Q2 2011, with the number of acquisitions undertaken falling 40% and 33%. North America buyers were more active during Q3, continuing a steady upward trend.

The number of transactions in the “Computer Equipment and Components” sector increased again. Also the Software sector showed a steady quarterly growth. The number of deals in the “Applications Software“ sector was up 22% to 89, and „System Software“ deals were up 46% to 19 in Q3 2011. The deal flow in the “Content and Media“ sector showed more modest growth of 7% in the quarter after a strong first half-year 2011 with 426 deals. The sector “Media and Content” is still the largest transaction sector.

There are signs that the public quoted companies are getting back into the market. In Q2 2011, quoted companies accounted for 36% of the buyers, but that has risen to 38% of buyers in Q3 2011. In particular, Nasdaq listed companies increased buying activity in Europe by 77% in the third quarter with 46 deals. The majority of the buyers in the technology sector in Europe, with 48% of all transactions, are private corporates. Also on the sell side the private corporates where responsible for the majority with close to 500 transactions in the third quarter of 2011.

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, 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.

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@tech-corporatefinance.de
Managing Partner: Sandra Preuß, Michael Klumpp

This release was published on openPR.