– CEE Study: Boom in Technology Transactions – Start-Ups on the Upswing

– Austria is considered one of the most attractive destination countries for M & A transactions in CEE

TMT (Technology, Media, Telecommunications) will become the most attractive sector for M & A transactions in CEE over the next 12 months. This is the result of the new corporate monitor by Wolf Theiss and Mergermarket, for which 150 top managers were asked about their opinions and expectations.

62% of respondents named TMT as one of the two most promising sectors in 2018, followed by Consumer & Leisure (44%) and Pharmaceuticals, Medical & Biotech (32%). 

Horst Ebhardt, Partner Wolf Theiss, explains: “The technology sector has been one of the most dynamic in the region for several years, and both local entrepreneurs and international corporations have relied on the abundant innovation power of a long tradition of excellent technical training Against this background, it is not surprising that the study participants continue to focus on this area “. 

E-commerce, fintech and data & analytics were named by 31% of respondents as the next two top areas for future investments, closely followed by cloud technology (30%).

Even emerging companies are credited with a dynamic force: some start-ups in the region have seen growth of 200% within one year. Fifty-three percent of respondents said they were interested in investing in or taking over a start-up. 

“If you look at the developments in individual countries, Austria still holds a leading position as a destination for M & A transactions in CEE,” explains Ebhardt. “Austria is at the forefront of all three criteria used to assess the attractiveness of a country: openness to investments, a stable legal system and the quality of the infrastructure”.

Austria also has the highest deal value in CEE in 2017: Vonovia’s acquisition of BUWOG amounted to € 5 billion and UPC’s T-Mobile purchase to € 1.9 billion. Wolf Theiss advised T-Mobile on the latter acquisition. The total value of the total transactions in Austria in 2017 amounted to € 12.1 billion (source: Mergermarket). 

The Czech Republic and Poland ranked second and third in terms of the total value of the M & A transaction, followed by Bulgaria (4) and Romania (5). Poland has also acquired a reputation as one of the leading fintech hotspots in Europe over the past year.

The original press release can be found here on Wolf Theiss’ website.