In 1997, 390 trans-atlantic merger and acquisition transactions took place in the computer industry, according to industry advisor Regent Associates. Of those 390, however, less than a third were carried out by European companies acquiring companies in the US and Canada. The vast majority – 275 – were initiated by North American companies acquiring companies in Europe. Political and economic changes in the emerging markets of Russia and Eastern Europe prompted many North American companies to make acquisitions in this region, according to Regent, accounting for 4% of all transatlantic M&A transactions by North American companies in 1997. But the UK, due to its similarities in business culture and language was by far the most popular target market for North American acquisitions, and almost half (46%) of all transatlantic M&A deals were completed there. Germany, France and the Nordic countries were the most popular after that, accounting for 15%, 9% and 9% of the transactions respectively. Predictably, UK companies are the most active in carrying out acquisitions in the US and Canada for the same reasons as North American companies are so keen to buy British companies. British buyers made 63% of the 115 transactions completed by European companies in 1997. Of all the transatlantic M&A deals, 40% were in the field of software and related services, by far the largest area of activity. Information services was the next most popular sector, according to Regent Associates, accounting for 14% of the 390 transactions, while support services made up 13% of M&A deals. Taken together, services deals dominated transatlantic M&A deals in 1997, says Regent, with systems integrators, professional services and consulting companies being most in demand.
