Legal IT Newswire: Tech M&A into the UK is riding high, according to new research from Livingstone
22 March 2017 – London, UK: Inbound M&A investment into UK computer software companies has increased by 70% over a two-year period, according to a new global M&A report launched today by Livingstone, the international mid-market M&A and Debt Advisory firm.
The report, The Acquirers – A Global Review, includes analysis of data from deals conducted between 2014 and 2016, across the UK, USA, Europe, and Asia. The data comprises inbound deals and cross-sector investment across the business services, industrial, media & technology, consumer and pharmaceutical industries.
The findings show that inbound UK acquisitions of companies operating within the software market increased by 70%, with deal volumes increasing from 37 in 2014 to 64 in 2016 alone. The computer services sector also increased by a notable 41%.
Overall, the UK’s media & technology sector grew by a rate of 25% year-on-year in the period, and accounted for nearly a quarter of all inbound M&A deals, up from 20% in 2015. Adding to overall UK M&A growth, the business services sector grew at a rate of nearly 40%, reflecting the ongoing strength of the UK’s service-led economy.
Daniel Domberger, a Partner and co-lead of the Media and Technology team at Livingstone, said:
“The tech sector has been tipped as a leading light of British business, and 2016 didn’t disappoint. Our findings show that international acquirers and investors are continuing to eye up the UK’s blossoming tech sector, and its future looks positive, regardless of what happens with Brexit.
“Several high-profile deals in the tech sector made headlines last year, and contributing to the 70% rise was the acquisition of UK’s biggest tech company, ARM, by Japanese group Softbank. The historical significance of the £24bn deal and the unprecedented value highlights that there is still strong appetite amongst overseas buyers to acquire or invest into high-quality UK companies, and the weaker pound is helping make the high valuations of UK tech assets easier for buyers and investors to deliver.
“We have also seen a flurry of disruptive technologies make significant strides forward, including virtual reality, drones and robotics. Tech is becoming the driver for almost all industry sectors, and further investment into the UK’s technology sector will stimulate growth and create jobs.”
Notes to Editors:
About Livingstone Partners LLP
Livingstone is an international mid-market M&A and Debt Advisory firm, with offices in Beijing, Chicago, Düsseldorf, London, Los Angeles, Madrid and Stockholm. Its 100 staff complete c.50 deals per annum.
About the research
The study, The Acquirers – A Global Review, documents the M&A transactional activity from 2014 to 2016 of China, the UK, USA, Germany, Spain and Sweden. The information has been compiled using data from Mergermarket and analysis from Livingstone’s experts.
For further information contact:
Karen Clark, Rostrum
T: +44 (0)203 727 3755