UK Tech Merger And Acquisitions Sector To Recover According To PwC

Research major PricewaterhouseCoopers (PwC) has forecasted a buoyant year ahead in terms of mergers and acquisitions (M&A) in the UK tech sector following a six-year long slump since “dotcom bubble” crash.

However M&A figures released by the analyst firm for the last year were not very encouraging, but the company is predicting that the UK technology market is ripe to see some big M&A deals this year.

In terms of numbers, tech sector M&A volumes have been plummeted by a significant 66 percent last year, from 66 to 23, with the deal values further plunged from £5.9 billion from 2008 to £3.3 billion last year, reaching their lowest mark since 2003.

In addition, last year saw only seven deals supported by private equity, as against 19 in the year 2008. Nonetheless, the market research firm asserted that the UK technology sector has finally “awoken” after a long period of “deep sleep”.

Predicting rosy future for the UK tech domain ahead, Andy Morgan, a partner a PwC LLP, said in a statement: “Recovery in UK tech M&A appears less pronounced than in the US where mega-deal announcements have provided momentum”.

“However, the right conditions appear to be in place to mean a tipping point into the next stage of the deal cycle and local confidence is starting to return”, he added.

Our Comments

The problem though is that there's nothing much left of the UK technology sector. We cannot remember when was the last time we witnessed a massive merger involving one player in the UK tech market. Let's see what will 2010 bring to the table.

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