The credit crunch has failed to dampen the hunger for IT deals in Europe,
fourth-quarter figures from
Regent
Associates indicate.
According to provisional data from the merger adviser, the number of European
technology mergers and acquisitions (M&As) leapt from 772 in Q3 to 799 in
Q4, defying forecasts that the impact of the US sub-prime crisis could stunt
activity.
Peter Rowell, executive director at Regent, said: “After drifting down in the
last couple of quarters, the number of European technology deals came back in
Q4. The market is not slowing as some had predicted and we have not seen the
effect of the sub-prime crisis.”
Scott Nursten, managing director of Cisco Gold partner s2s, bought last week by
Bailey
Teswaine, said consolidation will continue, but dynamics will change.
“We may see a drop off in highly leveraged, rapid-fire acquisitions of
low-profit businesses. But there are plenty of solid professional companies that
will whet the appetite of cash-rich firms,” he argued.
Keith Humphreys, managing consultant at analyst
EuroLAN,
said: “The s2s deal and Alan Watkins buying into Teskys underlines the fact that
valuations are now reasonable. If prices have adjusted because of the credit
crunch, venture capitalist houses will want to jump in.”
Simon Welch, marketing director at
Horizon,
said: “These figures do not surprise me. There is clearly a lot going on in the
finance market, but that will not stop good deals that make economic sense.”
Jason Rabbetts, managing director of storage VAR Storpoint, said: “If you look
at M&A activity, it is generally being done by people who are trusted in the
market. There are not as many new entrepreneurs coming onto the scene.”
Consolidation
moves for Dynax and Teksys







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