The mid market continues to be the playground for thoselooking at making mergers and acquisitions as the mega deals betweenmultinational IT players dries up.
According to research from PricewaterhouseCoopers LLP thetech sector showed signs of resilience compared to other markets but the mid marketrather than the enterprise level was driving M&A activity.
Deals valued between 10m Euros and 250m Euros accounted for94% of global deals.
But Andy Morgan, technology sector leader, corporate financeat PwC, said that the signs are a slowdown were already evident and there couldbe a further drop in deals over the course of this quarter.
“The flagging market was beginning to pant by Q4 2008. Athird of global deals in terms of both volume and value were completed betweenJanuary and March. In fact, the final quarter saw the lowest level of dealcompletions in the sector since the depths of the post bubble market in 2002,”he said.
He said the UKhad slowed down in parallel with the economy with just a trickle of deals beingcompleted in the fourth quarter.
“But the big question is - has the technology dealenvironment developed some truly defensive attributes, or will the inevitableimpact of the downturn on corporate IT budgets hit home in 2009?” he added.
In the last few weeks there have been sings that M&Aactivity remains a viable option in the reseller market with deals such as theacquisition of the Rapid Group by Trams an example of dealer consolidation.