European Cable and Software Sectors Tipped for M&A

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Speaking ahead of the TMT Finance Europe 2016 Conference, which is taking place in Munich on October 18, the sources said that increased access to US-style debt and equity financing structures and a rising number of new private funds targeting Central and Eastern Europe were also having an upward lift on telecoms and technology M&A prospects across the region.

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Cable consolidation and investment into regional software companies are likely to be the standout subsectors in M&A and financing activity in European telecom, media and technology deal making over the coming months, according to leading regional M&A bankers and advisers.

Speaking ahead of the TMT Finance Europe 2016 Conference, which is taking place in Munich on October 18, the sources said that increased access to US-style debt and equity financing structures and a rising number of new private funds targeting Central and Eastern Europe were also having an upward lift on telecoms and technology M&A prospects across the region.

Victor Karadjov, Executive Director, Financial Sponsors and TMT Investment Banking at Raiffeisen Bank International (RBI) – one of the key sponsors of TMT Finance Europe 2016 – noted that there had been a strong start to the year for M&A and financing in the CEE (Central and Eastern Europe) and DACH (Germany, Austria, Switzerland) regions, which he expected would continue into H2 2016 and 2017.

“New types of financing are available which we haven’t seen in CEE since 2007, so that is helping to drive up valuations and make M&A possible. There is definitely increasing sponsor interest too, with several new funds set up to target the region. Post-Brexit that may take a temporary hit, but I don’t think this will have a long term impact on appetite,” said Karadjov who will be speaking on the Private Equity Peer to Peer Roundtable alongside HgCapital, CEE Equity Partners and the EBRD.

2015 saw several large cable deals in Europe, with Pepcom and Primacom both acquired by Tele Columbus in Germany, while several other large transactions are in motion this year in countries such as Poland, Finland, Serbia and Romania, among others, according to global news provider TMT Finance.

“The cable sector is still hot – telcos are looking at quad play services to help offer bundles and reduce churn. Some telcos are coming late to the market which means they are likely to have to pay healthy multiples and full market prices for the assets". RBI’s Karadjov said, adding: “Poland is one of the more active geographies currently but generally speaking the M&A market across the region is quite buoyant.”

Over 200 key decision makers from leading European telecom operators, technology companies, private equity firms, towercos, media companies, investment banks, law firms and advisers will gather for the TMT Finance Europe 2016 Conference, which is being held in Munich for the first time, following three years in Warsaw.

Key companies represented at the event include: Deutsche Telekom, Telefonica, Tele2, TVN, Telekom Austria, O2 Czech Republic, Play, VimpelCom, M7, Cellnex, Emitel, Beyond, PCCW, EBRD, Engage Sport Media, Linklaters, Wooga, HandyGames, Credit Agricole, Dentons, Index Ventures, Crout, UFA Sports, CEE Equity Partners, HgCapital, JP Morgan, Raiffeisen, Societe Generale, Deutsche Bank and ING.

For more information go to http://www.tmtfinance.com/europe/

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