Permira‘s $5.8 billion take-private of UK cybersecurity company Mimecast was the largest in a series of European tech buyouts completed this year, as private equity investors continued to place big bets on the sector.
Public tech stocks have taken a hit in 2022 thanks to both macroeconomic volatility and the dying down of the wave of tech euphoria that came hand in hand with the pandemic’s digitalization. The European tech index, Stxe 600 Tech PR, moved into bear territory earlier this year, and many private market tech valuations were impacted as well.
But this hasn’t stopped PE firms from closing some sizeable deals. PitchBook data shows that six tech buyouts worth over €1 billion have been completed so far this year in Europe.
The companies involved in Europe’s largest tech buyouts of the year suggest that PE firms are being selective about their acquisition targets and seeking out specific subsectors. Targets ranged from IT digital services provider Inetum, which was bought by an investor group led by Bain Capital for €2.16 billion, to clinical trials software specialist Citeline, purchased by Warburg Pincus and Mubadala for €2.24 billion.
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