M&A activity in the European TMT space seems to be on track to returning to its pre-Covid levels, with transactions and deal value increasing by 12% and 7% respectively month-over-month. 241 deal completions were announced in March, and aggregate value increased to $33.1bn, the third highest figure of the past 12 months.

The M&A market in the European TMT sector seems to have gained in momentum this month. The total number of transactions increased from 194 in January to 216 in February, its highest figure since July 2020, while the announced deal value, which had dropped to a record low of $14bn in January, bounced back to $30bn. Cross-border activity accounted for a large number of transactions once again, particularly in the upper-end of the market.

M&A activity across the European TMT industry kicked off to a slow but positive start in January. Aggregate transaction volume increased by 62%, from 120 in December to 194, which put deal volume back in line with yearly averages. Signs of optimism came from strong valuation multiples, which remained high. American PE and trade buyers continued to express interest for the European tech sector.