Merger and acquisition activity.

Merger and acquisition activity in the European IT industry reached an all-time high in 2004, a recent review has found. Last year 2,405 M&A deals were signed--a 69 per cent increase on 2003, according to Regent Associates, which conducted the study.

Peter Rowell, chairman of Regent Associates, said the review showed signs of a stabilising market based on cash rather than equity. "If the market won't deliver strong organic growth, many leading suppliers will use their rapidly improving positions to fuel growth by acquisition," he said.