The year 2021 was record-breaking for the French tech M&A market, with an increase of 112 per cent in global value, going from €4.8 billion in 2020 to €10.2 billion in 2021, and approximately 320 deals during the year. Even if the effects of skyrocketing rates, global inflation and the correction of tech stocks – which impacts the valuation of companies – are noticeable in the French tech M&A market, some indicators are reassuring (e.g., the number of deals, which is two times higher than before the covid-19 pandemic). The widening of the scope of the French foreign investment control regulation to include the sensitive tech sector has generated an increase in the number of foreign direct investment notices to the French Treasury (a part of the French Ministry of Economy); nevertheless, foreign investors are continuously part of approximately one-third of the deals.

Reproduced with permission from Law Business Research Ltd
This article was first published in October 2022
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