M&A continues apace in software space

Latest Regent Associates figures reveal a combined deal value of $20.1bn for the month of July

The number of M&A deals involving European software firms smashed through the 260 mark for the third month in a row, market watcher Regent Associates revealed.

The combined value of deals was $20.1bn (£12.3bn) for July , with four $1m-plus deals in the mix.

Regent claimed the deal value curve resumed its “upward trend” in July now that the effects of the £39bn acquisition of T-Mobile by AT&T no longer count.

Firms most active in July included Google, Safran, HIS Inc and Compuware.

Regent said the trend will continue. “This flurry of merger activity is likely to continue throughout the second half of the year, with analysts forecasting that technology firms will mount more takeover bids over the remaining months of the year,” the analyst said.

“This forecast is based on a study which found that because businesses are not operating in stress mode any more, and as they realise how difficult it is to achieve significant growth through domestic markets, they are buying further afield,” the analyst added.