The mid market continues to be the playground for those looking at making mergers and acquisitions as the mega deals between multinational IT players dries up.
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According to research from PricewaterhouseCoopers LLP the tech sector showed signs of resilience compared to other markets but the mid market rather than the enterprise level was driving M&A activity.
Deals valued between 10m Euros and 250m Euros accounted for 94% of global deals.
But Andy Morgan, technology sector leader, corporate finance at PwC, said that the signs are a slowdown were already evident and there could be a further drop in deals over the course of this quarter.
"The flagging market was beginning to pant by Q4 2008. A third of global deals in terms of both volume and value were completed between January and March. In fact, the final quarter saw the lowest level of deal completions in the sector since the depths of the post bubble market in 2002," he said.
He said the UK had slowed down in parallel with the economy with just a trickle of deals being completed in the fourth quarter.
"But the big question is - has the technology deal environment developed some truly defensive attributes, or will the inevitable impact of the downturn on corporate IT budgets hit home in 2009?" he added.
In the last few weeks there have been sings that M&A activity remains a viable option in the reseller market with deals such as the acquisition of the Rapid Group by Trams an example of dealer consolidation.