Technology deals to feature

A number of deals in the technology sector are likely to feature in nominations for this year’s Deals Awards.

The Thames Valley and Solent Deals Awards is now open for nominations – with a closing date for entries of March 5, 2012.

An analysis by PwC has shown Merger & Acquisition (M&A) activity in the technology sector remained buoyant in 2011.

The strategic nature of many technology deals meant that, while the volume of deal activity was 10% lower compared with 2010 (354 deals versus 393 deals), average deal size continued to increase and the total deal value of €69 billion for 2011 was approximately 90% higher than the 2009 low.

Rob Morgan, Technology Sector leader in Corporate Finance at PwC, said: “Strategic acquisitions continue against a backdrop of long-term mega-trends playing out across the technology landscape. These trends are impacting the way technology providers address the changing needs of business, governments and consumers.”

“Cash remains king. At a time when debt is hard to raise those with cash are doing deals – and technology companies, particularly at the larger end of the market, have significant cash reserves which they are looking to deploy through M&A.”

Looking at the top 10 deals of the year, it is notable that both corporate and private equity buyers were prepared to deploy substantial sums of capital in the fourth quarter, at which time the capital markets were in hibernation.

Three of the year’s four largest deals globally – including the €8.2b purchase of the UK’s Autonomy by Hewlett-Packard – were completed in the fourth quarter.

Philip Shepherd, Technology Sector leader in Deal Strategy at PwC, said: “A clear trend in 2011 has been the increased value placed on Intellectual Property with patent acquisition being the driver behind a number of deals, particularly in the area of mobility. The ground-breaking purchase of Motorola’s handset business by Google is a good example of this.”