Feeds

UK goes shopping for tech firms

Domestic deal-making on the rise

Boost IT visibility and business value

The UK went against tradition last year and became a net investor in technology companies, according to a new report.

Year-end figures for technology mergers and acquisitions from PricewaterhouseCoopers (PwC) Corporate Finance show that UK companies acquired 33 technology businesses worldwide in 2005, while just 24 UK companies were procured by overseas buyers.

In 2004, 32 UK technology firms were purchased by international buyers, compared to 25 domestic acquisitions.

Overall, PwC said the figures show a trend toward increasing domestic deal activity, with UK deal volumes up 58 per cent.

What's more, the numbers showed the UK Alternative Investment Market (AIM) posing a strong challenge to the US NASDAQ as the market of choice for young, fast-growth technology firms, the report said.

The junior stock market's straightforward regulatory framework, high liquidity and growing international visibility is proving to be a "fruitful hunting ground" for buyers looking to acquire companies in the middle of their growth curve.

"Strategic M&A was firmly back on the boardroom agenda in 2005, and this has had a profoundly positive effect on the technology deal market as a whole," PwC Corporate Finance technology sector leader Andy Morgan said.

"The large deals last year helped create the confidence that encouraged M&A in the mid-market where most technology companies are to be found. Looking ahead to 2006, we believe this activity will continue, with the mid-market remaining the heartland for M&A in Europe, in particular."

Copyright © 2006, Startups.co.uk

Build a business case: developing custom apps

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.