KP TECH Analysis: Number of M&A transactions in the European technology sector on high level in Q2 2014

Acquisition activity in second quarter 2014 again on high level. There were 848 acquisitions involving European technology companies in Q2 2014, an increase of 7% over the same period last year. The combined value of all deals in Q2 2014 increased from $73,4 billion in Q1 2014 to 108,0 billion in second quarter 2014. Despite this, there was a strong resumption in TMT IPOs with 39 announced on European exchanges during the second quarter.

UK companies accounting for 29% of the deals announced in second quarter 2014 in terms of buy-side activity. In second place, North American buyers accounted for 13% of all transactions. Scandinavian buyers were noticeably more active and accounted for 12% of the deals and ahead of Germany with 9% in Q2 2014.

Sector digital media and content accounts for 29% of all European TMT deals and saw a 9% drop in second quarter 2014. There were also smaller falls in the IT services sector, down 6%, and the telecoms services sector, down 5%. However, acquisitions of software companies increased by 17%. Internet services sector unchanged from Q1 2014 and accounting for 8% of all deals.

The majority of the buyers in the technology sector in Europe, with 66% 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 Q2 2014. More than 200 transactions in second quarter 2014 came from divestment scenarios. In Q2 2014 there were close to 100 Venture Capital and Private Equity exits; clear higher compared to the previous quarter.

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. 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. In 2013, KP TECH has completed eight transactions with a total volume of more than EUR 100 million. KP TECH has been successfully completed nearly 500 transactions in collaboration with its partners; at approximately 50 transactions either the buyer or the seller was a company from Germany. KP TECH is represented through partners in the major markets UK, USA and India.

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

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