Talking tech heads
The tech sector has continued to perform and attract M&A activity despite uncertainty in the global economy. Jason Sinclair looks at the trends in a vibrant sector.
Companies in the technology sector continue to outperform equity markets in a “low growth, low inflation world” that is somewhat haunted by concerns about commodity prices, the future of Europe, ISIS, China and the US elections, according to ICON Corporate Finance.
With macro conditions remaining (at best) mixed, ICON states that there is still plenty of available funding from cheap debt and cash-rich corporates continuing to benefit the M&A market. A report from ICON suggests that “values are trending higher due to a combination of factors, including more cross-border strategic deals, and more acquisitions of start-ups in high-growth sectors”. It identifies social media, e-commerce, big data, digital marketing and niche software, and points to “strong interest for these higher growth businesses in a low growth world”.
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