Truffle Capital Unveils the Fourth Edition of Its Benchmark “Truffle 100” Ranking of the Top 100 European Software Firms

The "Truffle 100 Europe" report shows that the number of qualified staff rose from 194,000 in 2007 to 211,985 in 2008 (a 13.7% increase), 80% of whom are employed by the top 34 companies (with France-based firms in third place). The sector now employs 52,020 R&D-active staff, versus 41,591 in 2007 (an increase of over 25 %!).

The "Truffle 100" companies posted a mean increase in turnover of 3% (well down on 2007's figure of 10.3%). The four top-ranked firms are the same as in 2007: SAP, SAGE, Dassault Systems and Software AG.

French software firms account for 15% of the total turnover in the Truffle 100, in 3^rd place behind Germany (44%, over three quarters of which are due to SAP) and the United Kingdom (18%).

Key figures from the Truffle 100 Europe:

• Total turnover for 2008 was €25 billion, compared with €24.4 billion in 2007. 70% of this figure was generated by the top 25 companies in the ranking (down from 80% in 2007).
• The mean growth in turnover was 3% in 2008 - sharply down on the figure of 10.3% in 2007.
• The total turnover generated by European companies acquired by American software houses in 2008 was around €500 million.
• Profits rose from €3.2 billion in 2007 to €3.6 billion in 2008 (an 11% increase!).
• The sector's workforce increased by 13.7% to reach 211,985 in 2008. Strikingly, the number of R&D jobs rose by 25% (from 41,591 employees in 2007 to 52,020 in 2008).
• In 2008, 84% of the Truffle 100 Europe firms were listed on one or more stock markets. Listed companies accounted for 94% of sales and 98.2% of profits.
• R&D investment dropped from €3.73 billion in 2007 to €3.64 billion in 2008 (a 3% fall).
• Acquisitions of Truffle 100 firms in 2008: Italy's Gruppo Formula (the former number 88) was acquired by Sage, UK-based Financial Objects PLC (the former number 89) was bought by Temenos and IBS Opensystems PLC (UK, the former number 91) was taken over by Capita.

The measures most requested by surveyed software firms throughout Europe are research tax credits, followed by public R&D funding and increased venture capital investments.

About Truffle Capital

Founded in 2002 in Paris, Truffle Capital is a leading, independent, European private equity firm dedicated to investing in and building technology champions in the IT, life sciences and energy/sustainable development sectors. For further information, please visit www.truffle.com

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