Bonanza in hi-tech mergers

Click to follow
The Independent Online
THE VALUE of mergers and acquisitions in the global computer, telecommunications and media sectors almost doubled in 1998 as consolidation among the world's hi-tech industries gathered pace, according to a report published today, writes Peter Thal Larsen.

Broadview, the M&A consultancy specialising in technology, calculates that the total value of hi-tech deals reached $500bn last year - up 87 per cent from 1997, when it was $262bn.

Mega-mergers between US telecom giants - including the merger of former Baby Bells SBC and Ameritech, as well as Bell Atlantic and GTE - accounted for almost half of the value of hi-tech M&A deals around the world.

The report also shows a growing interest in technology in Europe, with the number of hi-tech flotations on this side of the Atlantic rising above the number in the US. During 1998, 155 technology companies floated on European exchanges, compared with 147 in the US.