Technology M&A Insights 2008

April 2008

Welcome to the 2008 edition of Technology M&A Insights from PricewaterhouseCoopers. This report provides an overview of M&A in the global technology sector during 2007 with analysis and comment on the market’s principal trends, driving forces and outlook for 2008 and beyond.

2007 proved to be a vintage year for the technology sector, driven by a surge in mid-market activity especially within the Software and IT Services (SITS) sector. The forces of convergence, together with the compelling financial rationale associated with customer demands for comprehensive and integrated solution sets, continue to drive activity levels.

It would be surprising if 2007 value levels were repeated in 2008; however the tougher environment will likely provide significant opportunities for those with the financial capacity, strength of commercial rationale and execution skills to deliver.

The hot spots for deal activity over the next twelve months are likely to be around continued cross border consolidation in vertical market focussed software and IT services, with selective activity in segments such as Telematics, Automation and Informatics. The drive to be green may also stimulate some interesting technology M&A activity in 2008.