Programmed for growth: Outlook for the technology deals market

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We’ve seen the technology sector show resilience to economic uncertainty and mergers and acquisitions (M&A) activity has remained active in 2011.

Trade acquirers with strong balance sheets continue to be serious competition in transactions of all sizes and deals are achieving reasonable and, in some cases, high valuations. There continues to be private equity investment particularly in the mid market where funding is still available for businesses with credible growth plans and strong management.

In this edition of Technology M&A Insights we consider what factors are driving deal activity, including increased focus on issues such as cyber security, big data and financial technology. We also consider how growing interest from cash rich corporates looking for strategic acquisitions will create more deal opportunities in 2012.

Although the current volatile economic climate looks set to continue the sector is in a good position to remain buoyant. That said it continues to be a challenging deals environment and the winners will be those who focus on relationships within a deal, prepare well for market conditions and take a global perspective, both in terms of targets and strategic acquirers.

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