M&A activity in IT sector in sharp decline
The value of mergers and acquisitions in the European IT sector fell by almost 50% last year, according to a report released by Big Four firm Ernst & Young yesterday.
The value of deals fell from $45.8bn (£27.7bn) in 2001 to $23.3bn in 2002. It represents a slump of 49.1%. The number of transactions also fell from 1,767 to 949 – a 46% decline.
E&Y maintains that US companies will remain the biggest buyers this year, with transactions within the software sector accounting for 40% of all M&A deals in Europe.