Stimulated by a strong ecosystem of startups, VC investors, the French public sector investment bank BPI, and government support, France's technology environment has been strong in recent years. And because of that, French tech companies have been excellent candidates for acquisition by US companies. Although there have been significant M&A transactions involving French companies and US buyers, the volume of transactions has not been as high as it could or should be. Part of that is cultural. For instance, often French company CEOs and their French M&A advisors are hesitant to contact potential US buyers because of language differences and incongruities in management style. Part of it is a matter of unfamiliarity. French investment bankers tend to search for acquirers locally, looking to potential buyers that they are more familiar with or those with whom they have a history of doing business.

However, the time is ripe for French tech companies to overcome those hesitancies and traditional approaches and target US buyers, as well as other potential cross-border acquirers, in a bigger way. However, to make that happen it’s important to work with an investment banker that has the requisite know- how, experience, and global reach. And that investment banker is Corum.

Why now?

A number of conditions have come together to make M&A transactions with US and other cross-border buyers particularly timely for French companies. One factor is the current economic uncertainty in France, something that is stimulating French companies to look outside of their country for mergers or acquisitions.  That uncertainty has led to a significant drop in local investment. In particular, French startups raised about €3 billion in the second half of 2024, which is half of what they raised in the first half of the year.

By comparison, there is a huge amount of capital currently available to US investors. For instance, US private equity firms and strategic investors currently hold over $6 trillion in dry powder, money readily available for investment, and US venture capital firms have almost $300 billion to invest.

Also, many US investors have lowered their minimum revenue and profitability thresholds, expanding the number of potential French companies as investment targets.

Adding even more stimulus for cross-border deals, the French government published a new bill in 2024 allowing PE firms to invest in French companies with a market capitalization of €500 million ($542 million), raising the limit from the current €150 million ($163 million).  This adds to the range of French companies that PE firms can invest in.

Why Corum?

Corum has almost 40 years of experience advising on the sale of technology companies worldwide. And although not particularly well known in the French market, Corum has been doing business in France and successfully assisting French tech companies through the M&A process for more than 25 years. They have a team of highly experienced dealmakers ‒ former CEOs who have built and sold their own tech companies prior to joining Corum. That team includes dealmakers based in France who are French, speak the language, understand the culture and environment, and have years of experience helping French tech companies successfully close transactions with US and other buyers across the globe.

Here are just a few of the successful cross-border deals involving Corum clients based in France:

  • Kinow, a French provider of a turnkey OTT video platform, was acquired by Belgium-based software company Alpha Networks.
  • Carenity, a French provider of a social platform that supports patients and their caregivers, merged with Fortress Medical Systems, a US-based vendor of clinical trial systems, and Clinical, a German vendor of clinical software. The deal was financed by German Private Equity firm BID Equity.
  • Witekio, a French developer of IoT software, was acquired by US-based technology solutions company Avnet.

Corum offers a detailed multi-step M&A process designed to find the right prospective buyers through an exhaustive global search. The process also prepares sellers to engage with buyers, get sellers through the rigors of due diligence, and create an auction environment where competitive bids from multiple buyers lead to an optimal outcome for the seller.

A fundamental ingredient in that process is Corum's proprietary database, the world's largest database of information about buyers, with over 11 million entries gathered over decades. That massive amount of buyer information coupled with Corum's proprietary research centers in the US, Europe, and Asia,  enables Corum to do the type of comprehensive worldwide search of potential buyers that no other investment banker can provide. Corum's process has resulted in more software and related technology companies sold than any other process in history, and to optimal deals that provide sellers with a maximum price, excellent deal structure, minimal taxes, minimal liability, and successful integration plans.

So if you are considering selling your French tech company, contact Corum. Their French-based advisors have the experience and knowledge, backed by Corum’s disciplined process, to help you find the right M&A partner – whether that partner is in France, the US, or any other country across the globe ‒ and help you get an optimal deal.

Corum Vice President Fred Thuard, a Corum dealmaker based in France, puts it this way: "There is a huge opportunity now for French companies to work with Corum, a highly-experienced advisor who can bring you to the US market. The time to act is now because that market is bullish."

Merge Briefing - Online in Paris

Tune in to an online briefing specifically designed for French entrepreneurs and CEOs. Learn about the current Tech M&A environment and how Corum's M&A process can help you achieve an optimal outcome. The briefing will be held on February 25, 2025 at 10:00 A.M. - 12:00 PM. CET. For further information see Merge Briefing: Online in Paris.