European tech market M&A activity buoyant


European tech market M&A activity buoyant

Simon Quicke

The value of mergers and acquisitions in the tech sector continue to rise providing yet another indicator, along with increasing employment, that the market is in recovery.

According to the latest M&A research for June from Regent it was a busy month in Europe in terms of buying and selling and despite a fluctuating stock market the tech activity ensured that slice of the market remained strong.

"Despite substantial declines in the major stock market indices in the month, buoyant acquisition activity helped push up the rolling three month P/E (price after tax earnings) ratios by 7% and the P/S (price to sales) ratios by 22%," stated Regent.

The value of tech deals across Europe has almost got back to the level of the highs of last year and the level of activity is at a year high from the period of July 2009 through to June 2010.

There are indications that the level of M&A activity in June will carry through to this month according to Regent: "Already, July looks busy despite the impending holiday season".

There has been plenty of channel consolidation already this year and the expectations are that it will continue providing more deals to filter in to maintain the level of current stock market activity.

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