The technology, media and telecoms sectors will be hotspot areas for merger and acquisition (M&A) activity over the next six months, according to the latest research from KPMG.
The market watcher’s Mid-Market M&A Outlook survey of 230 mid-market corporates, financial sponsors and fund managers across Europe revealed that more than two-thirds of senior executives expect M&A activity to increase.
Steve Halbert, head of middle market at KPMG Corporate Finance, said: “Despite recent stock market jitters, businesses are in the mood for expansion and growth. Confidence is high, cashflow is strong and financing conditions are favourable. This means more deals will be done, but not at any price. The approach is very much selective and strategic.”
Pierre Lams, co-founder of VAR Handheld PCs, said: “We’ve seen evidence of mergers and acquisitions across IT and telecoms in the past 12 months, such as Nokia acquiring Intellisync, which reflects the nature of the convergence between IT and telecoms technology. I’m sure we’ll continue to see mergers and acquisitions across these sectors. It wouldn’t surprise me if we were approached by a bigger company. We certainly would not discount being acquired.”
Duncan Davies, mergers and acquisitions manager at VAR TSG, which has made 18 acquisitions since its inception in 2003, told CRN: “We have been very acquisition-hungry and our appetite hasn’t diminished.
“We’re still very much in our land-grab strategy to service SMEs, but we will also look at acquisitions in terms of skills and technology. Mobility is an area that a lot of customers want.”
Telecoms VAR Chess has made 12 acquisitions in the past two years and is on the prowl for more.
Richard Btesh, director of corporate finance at Chess, said: “We have a simple strategy focusing on what we do best, which is billing for fixed lines. You have to be careful if you stray into new areas.”
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