The information technology sector sailed through a stormy 2007 to emerge with stronger results than many markets, with deal volume even surpassing the highs of 2006.

According to the latest findings from Regent Associates’ ‘European Technology Acquisition Review’, acquisitions involving European technology companies throughout 2007 revealed 3,215 transactions. This was a drop of two per cent on the 3,295 deals completed in 2006, however the total value of these deals rose four per cent to £176 billion.

The UK was the most active region, where 24 per cent of all tech deals were completed, with Scandinavia, the US, Germany and France experiencing strong results. The latter two countries underwent the highest levels of growth in the number of deals.

According to Kenny MacIver, editor of technology magazine Information Age, the bulk of the deals were undertaken by a few giant firms. He said: “The IT software, communications and storage sectors are currently undergoing massive consolidation at the moment. The main players are picking off smaller firms, whilst mid-market service companies are being pressured to upscale.”

Aside from Regent Associates’ encouraging findings, this year will a tough one as the full effects of the global slowdown take effect. According to the Regent Associates' chairman Peter Rowell: “Acquisitions remain a fundamental part of this fast moving industry, regardless of what’s going on with the global economy.

“Activity in 2008 will clearly be driven largely by the economy and we’d therefore expect to see a gradual slowing of deal flow over the next 12 months. However, because it is moving from such a high level it is clear that there is still plenty of time for those wishing to sell their businesses to do so with the expectation of strong interest and competitive valuations.”