KP TECH Analysis: M&A transactions in the European technology sector in the 1. Half-Year 2008

Acquisition activity in the first half of 2008 has held up well with just a slight tailing off during the last 18-month period. There were 779 acquisitions in the last quarter, a decline of just 1% from the 787 deals announced in the first quarter of 2008. The combined value of the Q2 2008 acquisitions increased by 18% to $53.4b compared to $45.0b in the previous quarter.

After declining buyer activity for a period of five quarters, the UK based companies showed increasing purchasing levels in H1 2008. Scandinavian companies showed recovering activity as well in the quarter whilst North American activity declined slightly after two quarters of good growth. The biggest percentage fall in buying activity was amongst Eastern European buyers where telecoms transactions in particular almost halved.

The content and media sector witnessed exactly the same number of deals - 464 transactions in H1 2007 and H1 2008. Software was the same with 225 transactions in H1 2008, just one less than a year earlier. However this did mask a decline in Application Software deals and corresponding increases in both Consumer and System Software acquisitions. IT Services deals have fallen some 10% over the course of the year, driven down by falls in Consulting and Outsourcing transactions. Conversely there has been strong interest in IT Solutions companies with a vertical focus.

The majority of the buyers in the technology sector in Europe, with 44% of all transactions, are private corporates. The number of either completed acquisitions or current bids has increased by 46% in Q2 compared to the previous quarter.

More details on this analysis are available by request at info [“at”] tech-corporatefinance.de or the follow contact information’s.

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

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, 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.

This release was published on openPR.