It has emerged that technology companies will be at the top of business buyers’ target list over the next two years, according to research from law firm Pinsent Masons.
UK and Ireland have been highlighted as the most active areas for tech business deals, with London the start-up hub of Europe - no doubt helped along by London’s “favourable tax environment when it comes to tech investment”.
In a survey that questioned 150 senior corporate executives and private equity professionals on their views, about 80 per cent expected a rise in the volume and value of deals in Europe over the next year, set to top the record number of deals seen in the industry last year.
Cloud and mobile were tipped to be the most active areas for acquisition, while wearable tech items and the ‘internet of things’ were ranked as most likely to continue growing organically.
Those questioned in the survey had all completed deals in the past 12 months and said that expanding geographical presence was the most common reason behind technology acquisitions.
Satisfying industry regulations is still the highest legal hurdle to completing tech deals, Pinsent Masons said. Just under half of all successful buyers (45 per cent) said it had been the most difficult challenge to overcome in their last purchase.
Mergermarket’s editor Beranger Guille commented: “As the mid-market heats up, we expect deal activity to increase, particularly in volume, fuelled by growth in mobile payment, FinTech, analytics and security.”
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