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US venture-backed M&A market enjoys slight upturn in Q2 200312/08/2003. Source: AltAssets. 
 US venture-backed M&A market enjoyed a slight upturn in the second quarter of 2003, according to Thomson Venture Economics and the National Venture Capital Association. This modest increase in activity follows two consecutive quarters of decline.
In the second quarter of the year, 72 venture-backed companies were acquired for a total value of $1.8bn, spread among the 27 targets that disclosed a deal value. These figures represent an average deal value of $68.2m per disclosed deal.
The modest increase was largely the product of a resurgence in activity in the telecoms sector, and healthy increases in the biotechnology and networking sectors.
‘Unlike other venture industry metrics, which show 80 per cent or greater decline from peak 2000 levels, the number of M&A exits have remained fairly robust, commented Mark Heesen, NVCA president. ‘What we need to see going forward is an increase in average valuations of venture-backed acquisitions.'
The software sector continued to dominate deal volume, with 25 transactions. The total disclosed value of the eight deals reporting was $509.4m. The largest software deal was Microsoft's acquisition of Java-based applications designer PlaceWare for $200m.
Other deals of note include the $180m acquisition of wireless infrastructure designer Winphoria Networks by Motorola in the telecommunications sector and in the medical devices sector, Abbott Labs' acquisition of Spinal Concepts for $170m.
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