|European Share of World's Technology Mergers, Acquisitions Doubled in 1999|
Posted: 25-Jan-2000 [Source: Bloomberg]
[Driven by the rapid consolidation of the mobile phone industry, Europe's share of industry mergers becomes 38% of the worldwide total.]
By Bundeep Singh Rangar, London -- Europe's share of computer,
media and communications mergers doubled in 1999 to 38 percent of
the $1.2 trillion worldwide total, driven by a rapid consolidation
of the mobile-phone industry, Broadview International LLC said.
The U.S. investment bank said European companies completed
$455 billion worth of takeovers, six times as much as in 1998. The
number of transactions rose 30 percent to 2,271. Mobile phone
company mergers, such as Mannesmann AG's $33 billion purchase of
Orange Plc, were a quarter of the total.
Anticipated Internet growth also drove mergers, and led many
companies to pay high multiples based on business potential rather
than past performance. It cited Phone.com Inc.'s $239 million
purchase of Northern Ireland's Apion Ltd., and Microsoft Corp.'s
$130 million acquisition of Sweden's SendIT AB.
``The last year has seen a frantic race to acquire customers
and build traffic,'' said Victor Basta, head of Broadview's
European operations. ``The year ahead will have to be about
building real revenue from this traffic.''
The trend was underscored by Cable & Wireless Plc's
acquisition of eight Internet service providers for about $500
More than half of all mergers were a combination of stock and
cash, compared with 41 percent in 1998. That is because the rise
in value of Internet stocks made them an attractive currency for
European companies made 229 acquisitions in Europe for a
total of $86 billion, representing a 55 percent increase in number
and a tripling of value.
Back to Headlines...