KP TECH Analysis: 7% decrease of M&A transactions in the European technology sector in Q1 2013

Acquisition activity in Q1 2013 saw a 7% decline compared to the previous quarter Q4 2012. There were 719 acquisitions involving European technology companies in Q1 2013, compared to 777 deals announced in Q4 2012. The combined value of all deals in Q1 2013 was almost $50 billion, the highest quarterly figure for more than a year. IPO activity remained at a relatively low level with 5 IPO’s in the first quarter 2013.

There was encouraging activity from North American buyers (USA and Canada) with 81 transactions in Q1 2013. They represent 11% of all buy-side deals in Q1 2013. In the first quarter 2013 companies from Germany saw increased deal-flow compared to the last quarter in 2012. German companies where involved in 72 transactions in Q1 2013; up 24%. Also recovery in buying activity from companies from France and the rest of the world.

On the buy-side two sectors saw increased numbers of transactions in the first quarter 2013 – IT Service with 171 transactions; up 20% and the Software sector; up 3%. The largest transaction sector, Content and Media showed a downturn of more than 13% in Q1 2013, with a total of 179 transactions.

The majority of the buyers in the technology sector in Europe, with 72% 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 Q1 2013. More than 64 transactions came from divestment scenarios. In Q1 2013 there were 32 Venture Capital and Private Equity exits; clear lower compared to the previous quarter with 50 transactions.

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
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.