Silicon Valley's not the only place where deals are getting done these days. European dealmaking hit a high in 2006, with some 3,000 mergers and acquisitions totalling $337 billion, Silicon.com reports.

According to The Regent Associates quarterly European Technology Acquisition Review there wre 3,295 deals in 2006 compared to 3,053 deals worth $272bn in 2005.

There were seven deals worth more than $10 billion, but there's no bubble, says Regent's Peter Rowell:

"2006 was a very active acquisition market for technology companies. Just as in 2005, the current activity is built on solid foundations with carefully thought-out strategic and financial metrics."

"Good profit levels in the industry are ensuring that successful companies are able to pursue an active acquisition strategy to supplement their organic growth. This, together with increased aggression from the cash-rich private equity community, means that we are seeing some interesting buyer tensions in the market."

Look for 2007 to be a little less busy.