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Market context

European Tech M&A Outlook – 2018

February 2018

Macro close to peak, but low rates and record private equity ‘dry powder’ support M&A outlook. 

In the last 5 years, Equity markets have performed well with the European Tech sector outperforming materially. 

Barring any macro shocks, we expect the Tech sector to continue to grow faster than the economy in the next 12-24 months, particularly the B2B sector. Overall we see a continued long tail of M&A activity with European IT Services and Software sectors driven by the need to consolidate a fragmented market. 

We believe that the M&A environment in European Tech will remain positive, as several macro trends remain supportive: the global economy should continue to show synchronized growth, in turn driving corporate earnings and capital markets; funding costs for corporates and private equity and investors remain very low by historical standards, while cash continues to yield very little and PE activity should be supported by ongoing high levels of fundraisings and strong interest in the sector.

In this research you will learn more about:

  • Macro backdrop benign…but can it get any better?
  • European Tech - M&A update 
  • Private equity: A growing force in European Tech
  • Big is beautiful - the consolidators in Europe 
  • Outlook: M&A momentum should remain solid

 

About Klecha & Co.

Klecha & Co. is a European private investment bank focused on technology, software, IT services, hardware and IoT, helping entrepreneurs, companies and financial investors with their strategy definition and post-acquisition integration issues, as well as for raising the necessary capital to execute their strategies.

With over 14 years in the market and offices in Milan, London, Paris, Madrid and New York, we have demonstrated global execution capabilities and a network of thousands of active C-level contacts and hundreds companies worldwide in the Tech industry.

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