Cash-rich Asian investors will account for 30% of mergers, acquisitions and investment in European technology firms in five years' time.
The prediction from investment firm Magister Advisors is premised on continued strong earnings growth of Asian technology companies.
"Chinese tech giants are generating far more cash than they can profitably deploy in China," says the firm, in a statement. "Alibaba's annual cash generation has jumped six times to nearly $9 billion in just four years, while Baidu's market value has soared from $1 billion to $64 billion since IPO [initial public offering] just over a decade ago, all while at the same time China's growth rate is slowing."
Magister Advisors points to recent deals such as the acquisition by Chinese technology giant Tencent of Finnish games developer Supercell and the buyout of chip company ARM by Japan's Softbank.
"There is a huge desire to 'buy the best' abroad and bring it back home," says the statement. "Demands for proven, transformational technology has never been greater in the region."
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