The global value of technology M&A was up by almost 90% in 2005, with the top three deals accounting for over €25bn alone, according to the Technology Insights report published by PricewaterhouseCoopers Corporate Finance.
Despite an increase in deal numbers of just 2% to 589, 14 €1bn-plus technology deals helped lift overall deal value by 88% to hit €97bn in 2005.
Private equity played an important part in the market in 2005, with private equity houses behind seven of the 14 €1bn-plus deals and fund exits driving a third of all technology flotations in the UK. A combination of maturing business models, proven end-user demand and visible cash flows, coupled with highly liquid debt and private equity markets, has resulted in a highly competitive market for quality technology assets. In the UK market, private equity firms were involved in one third of all deals, either from a buy or sell side perspective. Further activity is likely in 2006 as more businesses seek to develop and create value away from the glare of the public markets.