The usual summer slow-down in European TMT M&A activity was much more evident this year with a 36% drop in the number of deals announced during August. The aggregate deal value was correspondingly lower.
Valuation multiples were slightly lower with the Price/Sales ratio down from 1.7 in July to 1.6 in August and the Price/EBITDA ratio fell from 10.9 in July to 9.6 in August.
Listed technology companies, as represented by the UK TechMark index, fell 2.5% in August.
European buyers resumed a strong position amongst the top global TMT deals in July. During the month there were seven deals valued at more than $1 billion involving European TMT companies.
Valuation multiples remained strong with the Price/Sales ratio up from 1.6 in June to 1.7 in July and the Price/EBITDA ratio was unchanged at 10.9.
Listed technology companies, as represented by the UK TechMark index, gained 1.8% in July.
After a high value deal spree in April and May, European buyers focused more on relatively smaller deals in June, allowing US buyers to lead the global TMT M&A activity. European deal flow remains stable at about 300 per month.
Valuation multiples continued to impove with the Price/Sales ratio at 1.6 and the Price/EBITDA ratio up from 9.6 in May to 10.9 in June.
Listed technology companies, as represented by the UK TechMark index, dropped 0.5% in June.
European deals led the global TMT M&A activity in May, boosted by 11 transactions valued at more than $1 billion.
Vodafone’s acquisition of Liberty Global’s German, Czech, Hungarian and Romanian operations for $22 billion was the top global TMT deal in May.
Valuation multiples continued to improve with the Price/Sales ratio up marginally at 1.7 and the Price/EBITDA ratio up from 7.4 in April to 9.6 in May.
Listed technology companies, as represented by the UK TechMark index, gained 3% in May.