Mergers and acquisitions buoyant in the EU tech sector

Regent report shows declining stock markets not reflected in M&A activity

June saw 260-plus mergers and acquisitions worth about $10bn

Despite significant declines in major stock market indices, European merger and acquisition (M&A) activity is buoyant, according to tech investment banking services provider Regentin its June M&A report.

It said in the report: "It's rare for all of the activity and valuation data to be positive in a single month. But this has been the case in the technology sector in Europe in June."

The value of the 260-plus deals was about $10bn (£6.6bn) for June, and July looks set to be even busier despite the holiday season, according to Regent.

Two notable UK companies fell to US buyers last month. Oxfordshire-based Portrait Software was acquired by Pitney Bowes in a £44.4m deal, while semiconductor firm Broadcom paid $47.5m, representing an 84.2 per cent premium, to acquire Innovision Research and Technology.

Innovision is a leader in RFID smart tags and near-field communication (NFC) technology, which Broadcom said would be increasingly important as mobile device use increases.

On the divestment front, Telefonica has offloaded Manx Telecom to London-based private equity firm HgCapital, and telecoms management company CPS, for £158m.

Alex King, head of telecoms at HgCapital, called the acquisition of the Isle of Man's main telecommunications supplier a "growth investment".