Technology M&A increased in 2004, according to PwC report
Technology M&A increases by 23% and further mid-market deal flow is anticipated throughout 2005
Technology M&A increased by 23% in 2004 with worldwide transactions totalling E155 billion ($201 billion), according to Technology Insights, a report by PricewaterhouseCoopers Advisory Group to gauge M&A activity in the technology industry.
This upturn was driven by increased mid-market activity as well as an increased propensity for technology industry players to execute deals beyond their national borders. The report also found that the sector had become a mid-market story with transactions valued at between E10 million and E250 million representing 97% of UK technology deals and 89% of global technology M&A.
Other key findings include:
* There was a pronounced increased in activity in the E50 million to E250 million range which represented 36% of UK deals in 2004 compared to 24% in 2003. The parameters of what it takes to be a genuinely global technology player continue to be redefined, encouraging further mid-market M&A in 2005.
* In contrast to 2003 when technology M&A was primarily a domestic affair, the volume of cross-border technology M&A as a whole increased by 91% in 2004, driven largely by increased transatlantic deal flow.