Technology deals
Technology stocks have bounced back from the lows of Q1 2009 more aggressively than the broader market to date. This is now feeding through into increased transaction activity as CEOs look more aggressively for growth, public markets show an increased appetite for quality assets with strong growth characteristics and liquidity gradually increases.
Our dedicated Corporate Finance team focuses specifically on the technology industry, providing a full range of M&A and financial advisory services from international acquisitions and non core disposals, raising debt and equity finance through to public market listings and advice. We are able to advise technology companies on how to achieve their growth and financing plans in the current climate.
Some of the trends we are seeing in the sector include;
- Mergers and Acquisitions - transaction activity is picking up progressively, with valuations having strengthened as the markets have recovered. Hot spots for M&A include the migration to SaaS delivery models, consolidation in key vertical market application areas such as public sector and financial services and data security.
- Financing - debt packages are typically more expensive and shorter than pre-downturn levels, but liquidity is returning. The Corporate Bond market has filled some of the gap for longer term debt options.
- IPOs - public market appetite for Technology stocks appears to be returning. The recent UK IPOs of Promethean and EMIS have provided some substance to the much anticipated awakening from the deep freeze of 2009.
- Private Equity - funds are attracted by the cash generation and growth characteristics of quality technology businesses. There remains a wall of private equity money looking for the right investment opportunities, which is creating significant competition and robust pricing from Private Equity houses for those quality assets in the sector which are available
