European tech deals inked this year are more than last five years combined, says Magister Advisors

Victor Basta, partner at Magister Advisors

The European technology industry has come of age in 2016, according to analysis by technology merger and acquisition (M&A) advisory firm Magister Advisors.

The firm believes that tightening US immigration will consolidate world-class European talent pool. Magister reported unprecedented M&A interest from Asian buyers, together with a strong IPO (initial public offering) market for the best European tech businesses, which it says have driven an unprecedented surge in “blockbuster” deals.

Magister Advisors also sees the next wave of $5 billion+ companies already emerging in Europe, underpinned by comparatively strong growth and revenue performance by European unicorns and a climate of innovation in some of the hottest technology sectors. 

The six large deals so far this year are NXP’s $45 billion sale to Qualcomm, Softbank’s $35 billion purchase of the UK’s ARM plc, Tencent’s $9 billion acquisition of Nordic gaming company Supercell, Activision’s $6 billion purchase of Candy Crush parent King, and the successful IPOs of Markit and Worldpay. Just behind these is Danish payment company Nets’ $5 billion IPO a few weeks ago. 

Magister Advisors’ analysis has shown that the only other European tech companies achieving these valuations since 2010 have been Skype (2011), Autonomy which was famously sold to HP in 2011, Microsoft’s disastrous 2013 purchase of Nokia’s handset business, and Zalando listed in 2014.

XhnSn3S0Magister Advisors notes that not only has the quantity of what it terms “blockbuster deals” increased in 2016, the quality has also improved dramatically. Whereas Microsoft’s Nokia mobile purchase, for example, was a distress sale, the acquisitions of ARM, King and NXP are purchases of leadership companies in their field, with huge future strategic potential for their acquirers, says Magister. 

Three market sectors in the ascendancy in Europe, according to Magister Advisors’ analysis, are Payments, Analytics software and AI. Three market sectors in decline are e-commerce, Personal productivity software and Ad Tech.

Victor Basta, partner at Magister Advisors, said: “2016 has been an unprecedented year for European tech. We have seen a Nordic company founded barely six years ago, Supercell, attract $9 billion of cash from one of Asia’s internet giants. And one of the pillars of the mobile revolution, ARM has gone from IPO to a $35 billion acquisition by Softbank in under 20 years. The exponential growth in value associated with Silicon Valley is no longer confined to Pacific Time Zone. Entrepreneurs in Europe now have home-grown models of how to create, build, and scale companies of huge value without ever leaving the European continent. 2016 will be looked on as the year the European tech industry truly came of age, poignantly in a year when the whole European experiment has been called into question.” 

Comment on this article below or via Twitter: @IoTNow_ OR @jcIoTnow

RECENT ARTICLES

Axiomtek launches compact DIN-rail IIOT gateway for data driven energy

Posted on: November 30, 2022

Axiomtek, a world-renowned specialist relentlessly devoted in the research, development, and manufacture of series of innovative and reliable industrial computer products of high efficiency is pleased to announce the ICO120-E3350, an extremely compact industrial IoT gateway powered by the Intel Celeron processor N3350 (codename: Apollo Lake-M). The ruggedised designs feature fanless operation, -40°C to 70°C

Read more

Semtech, AWS to create low-power IoT track and trace services with LoRa cloud geolocation

Posted on: November 30, 2022

Please replace the release with the following corrected version due to multiple revisions to the Forward-Looking and Cautionary Statements.

Read more
FEATURED IoT STORIES

The IoT Adoption Boom – Everything You Need to Know

Posted on: September 28, 2022

In an age when we seem to go through technology boom after technology boom, it’s hard to imagine one sticking out. However, IoT adoption, or the Internet of Things adoption, is leading the charge to dominate the next decade’s discussion around business IT. Below, we’ll discuss the current boom, what’s driving it, where it’s going,

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more