Technology M&A reaches five-year peak, according to Regent Associates

To date in 2005, 1413 deals have been completed, up 26% on the same period in 2004. This is just short of the heady days of H1 2000, which saw 1465 acquisitions in the first six months. These results confirm the steady upward trend that began in early 2003 where acquisitions for the entire year totalled 1595 and then rose to 2405 in 2004. This trend looks to be on track for 2005 with traditionally more deals (on average 16%) being completed in the second half of the year.

In addition to volume, deal value appears to be increasing as well. The combined value of all deals in the first half of 2005 totalled $107bn. Compare this to 2004 and 2003 where only $50bn and $50.3bn in deal value were completed in the same time frame respectively and it is evident that this increase has been fuelled by the improving performance of the industry as a whole. Steady growth in profits has occurred despite an overall market growth rate that has stabilised at a level well below that of the dot com boom. This is evident by the level of IPO activity bouncing back, fuelled by cash reserves, after the surprising decline in Q1 2005 when there was much talk but little flotation activity.

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