European M&A markets show recovery post COVID-19

Cecilia Canoura
Senior Riset Analis

The global economy has been significantly impacted by the COVID-19 pandemic, causing many businesses to struggle or even close down. The European M&A markets were not immune to the pandemic's effects, as many deals were put on hold due to the crisis's economic uncertainty. However, as the world adjusts to the new normal, there are signs that the European M&A markets are beginning to recover.

The European M&A market has shown signs of resilience in the face of the pandemic, according to data from Mergermarket, a leading provider of M&A data and intelligence. There were 1,097 deals announced in Europe in the first quarter of 2021, totaling $246.7 billion. When compared to the same period in 2020, this represents an increase in deal volume and value, indicating that the market is recovering.

The technology sector has seen significant M&A activity in Europe following COVID-19. Many companies in the technology sector have seen their valuations rise as a result of the pandemic, making them attractive targets for M&A activity. For example, Microsoft announced in February 2021 that it would pay $19.7 billion for Nuance Communications, a speech recognition technology company.

Healthcare is another industry that has seen an increase in M&A activity. The pandemic has highlighted the importance of the healthcare industry, and businesses in this sector are looking for new ways to expand and improve their offerings. Elekta, a Swedish company, announced in June 2021 that it would acquire Kaiku Health, a Finnish digital health company, to expand its portfolio of cancer care solutions.

Overall, the European M&A market is showing signs of recovery post-COVID-19. While the pandemic has caused significant disruption to the global economy, businesses are adapting to the new normal, and opportunities for M&A activity are emerging. As the world continues to recover from the pandemic, it is likely that we will see further growth in the European M&A markets, particularly in sectors such as technology and healthcare.

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