KP TECH Analysis: Rise in M&A transactions in the European technology sector in the 1. Quarter 2009

Acquisition activity in the first Quarter 2009 just increased 3% compared to 4. Quarter 2008. There were 715 acquisitions involving European technology companies in Q1 2009, an increase of 3% from the 691 deals announced in the last quarter of 2008. The combined value of these acquisitions has fallen again to $13.8b, 25% down from the $18.5b recorded in the previous quarter.

UK based companies showed a small increase in purchasing levels in Q1 2009. They were supported by strong growth in deal activity by companies throughout much of the rest of Europe including Germany up 35%, Benelux up 21% and France with a plus of 13%. Acquisitions by North American (USA and Canada) companies and those in the rest of the World were well down again.

Three sectors saw increased numbers of transactions in the first quarter of 2009. Internet Services, again up 73%. Communications based on a diversification trend, both Services and Equipment up 23% and Media and Content, particularly print publications and media services, up 15%. The main declines were in the key IT sectors. Hardware with a decline of 15% and Software, down 11%. The Distribution Channel declined also 12%. The number of transactions in the IT Services sector was flat in the first quarter of 2009.

The majority of the buyers in the technology sector in Europe, with 57% of all transac-tions, are private corporates. Also on the sell side the private corporates where respon-sible for the majority with more than 400 transactions in the first Quarter of 2009. More than 200 transactions came from divestment scenarios.

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

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 in-formation technology, cleantech, 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.

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.