European technology acquisitions hit all time high

08/02/07 00:00

Figures from the Regent Associates’ ‘European Technology Acquisition Review’ (ETAR) shows that there were a total of 3295 transactions last year, up 8% from 2005.

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Also, the combined value of deals for 2006 also rose to £171bn up from £139bn.

However, analysts believe that the trend has reached a plateau of just over 800 deals per quarter.

ETAR, which conducts the research quarterly, says that the results are indicative of confidence in the industry as a whole, and evidence of an abundance of buyers with high levels of cash.

However, they add that the high growth is not a bubble and conditions do not compare with 2000, when the dotcom bubble burst.

Peter Rowell, chairman of Regent Associates, predicts that 2007 will also be a strong year for deal activity.

“Looking ahead, there is every indication that 2007 will be a very good year, but maybe not hitting the peaks of 2006,” he said

“Acquisitions are a fundamental part of this fast moving industry and all of the ingredients are in place for a busy year – a supportive economy, technology convergence, industry consolidation – coupled with plenty of cash.

“Add to that the high number of private companies, many of them venture capital backed, that are seeking an exit, and we have a perfect balance of drivers on both sides of the acquisition equation.”