Technology M&As on the up after strong quarter

Technology mergers & acquisitions [M&A] are on the up as the amount of deals being made in Q3 2013 increased with software and hardware deals coming out on top.

Figures released to Tech City News by GP Bullhound, a technology investment bank, show the number of M&A deals in the tech sector increased by 14 per cent compared to the previous quarter and the amount of funding rounds was up 17 per cent.

Deal flow, on a month-to-month basis, increased through July by 40 per cent, through August by 11 per cent but then dipped by eight per cent in September. August was the top month for funding rounds with a total of 347 secured, representing an increase of 48 per cent compared with the previous month.

Software came out on top when M&A deals were broken down by sector with a total of 287 of the 943 deals coming in that part of the market. Hardware was in second place with 190 deals done in Q3 2013 with third position going to Internet technology with 110 deals done in Q3.

Confidence in the technology sector has been buoyant over the past few months and the UK market, especially, is experiencing a fruitful period. The UK Business Confidence Monitor revealed back in August that confidence stood at +30.8, a number significantly higher than the UK economy’s reading at the time of +24.0.

In the last quarter the UK technology industry reported growth of 3.8 per cent for the preceding year, which was also higher than the UK economy’s figure of one per cent. Much of this has been driven by the increased interest around technology M&As and it's projected the UK tech industry will see growth of 7.8 per cent and become one of the main drivers of the UK’s economic recovery.

Image Credit: Flickr (AndreasPoike)